The chart I am plotting here is the ratio chart between FMCG & Auto Sector. The logic is that during good times Discretionary sector does well & In Bad times Investors hide into consumer staples. As this chart is suggesting FMCG sector is at an record low compared with Auto Sector & has just begun to outperform which is an indicative that one should be cautious....
As you can see from the chart Euro/Dollar pair is trading at the top of the down trending channel. It can be risky to initiate fresh longs in Euro from here, Wait for the right time to initiate Shorts in Euro. It may take some time for Euro to top here & it can be painful to hold Shorts but that would be the right decision I GUESS.
Repco Home has been trading down for quite some time now. Down Trend line Breakout is yet to happen but Price Rate of Change has broken out of downtrend as you can see from the chart. I am expecting price will soon follow the Rate of change & would soon have a breakout, to climb higher.
$/yen is trading choppy recently and there is no clear trend emerging, so i am trying to look at some other factors to see which way it might turn. The first thing is Nikkei Index itself which moved back above the resistance plus MACD turned positive which is positive for $/Yen.
Second is the bond yield spread which i think is moving in favor of $. Third is $/Yen...
UJ had a big short squeeze on Friday on NFP report. Speculators remain net short on Yen till date. I would wait for a UJ to break above down ward sloping trend line to take a long position on the pair.
Traders have done an open encounter of US Dollar(full shootout), US Dollar is getting shot down almost everyday after US data comes out. US Dollar is oversold on almost every parameter this raises the risk of Short Squeeze, more specifically against Japanese Yen, as you can see from the chart it is near multiple support levels. That makes it attractive trade on...
GBPUSD is on the verge of making a Big Breakout. This move can turn out be a game changer for GU major trend reversal is on the cards. GU is breaking out of downward sloping trend line which is there since Sep 2015. First Target is around 1.30 which I think it will easily cross & after that move as far as 1.34.
Hindalco has been consolidating between 180-200 range. Today it has successfully managed to close above this consolidation range. Good OI addition was also seen in July futures contract. As this move has come out of big consolidation it is going to be strong upmove.
As a disclosure I am also holding Long positions in July futures.