- WE'RE JUST RANDOM SPECKS OF DUST IN A TORNADO TO THE MARKETS .......
- CHARTISTS MUST PUT ALL BIAS ASIDE AND LET THE CHARTS DO THE TALKING OR WE'LL SEE ONLY WHAT WE WANT TO SEE
- This blog has a copy of all header posts that I publish anywhere, so that those interested in seeing what my thoughts are on the markets can find them easily.
- I will be answering questions and responding to comments, so feel free to respond to any posts and I will see your comment even if it is not on the most recent post.
- If you're interested in seeing any intraday charts I post, I do that on twitter, and my twitter handle is @shjackcharts.
- The charts in the posts are as large as I can practically make them. if you would like to look at one more closely, click on it, and the link will take you to a larger version at screencast. If you click on that again, you will get a full page version, and can use the resizing function on your browser to enlarge parts of interest further.

Tuesday, 1 June 2010

Failed IHS, Broken Wedges

I posted a warning round various blogs last night that the action on ES was looking very bearish and that the rising wedge on it had broken. Since then my concerns have been confirmed by a 20 point fall in ES overnight.

There seems little doubt now that the IHS patterns on various equity indices have failed, and that the wedges on various USD currency pairs look more than likely to play out as well. Here's the broken rising wedge on the ES 10min chart:


The rising wedge on EURUSD broken on Friday, and has already played out to target, and EURUSD has gone on the make a new low from there. The next obvious target is for another touch of the lower trendline of the main broadening descending wedge shown below on the EURUSD daily chart. The target would be 1.1925 if hit today:


GBPUSD broken out of a broadening ascending wedge on Friday, but has held up better since then. The broken wedge has a target of 1.425:


AUDUSD has also broken out of a broadening ascending wedge and that has a target of 0.805:


The only one of the USD currency pairs that I watch regularly (excluding JPYUSD) to have held a rising trendline was CADUSD, and that has broken down from it overnight.

A retest of the recent lows looks likely from here.

No comments:

Post a comment