S&P breaks out!!!

New highs yesterday from S&P and anyone who followed our analysis could have at least made a profit of 16 points (1416-1432). If one bought above support at 1397, then profits could be more than 32 points. Since last week I mentioned that our initial target is around 1450. The 1400 level is probably going to be now an important intermediate term support. This price level is going to be the base of a new upward wave that will try and reach 1500. 

We mentioned many times that the downward move was corrective and that an upward move was expected due to that fact. That is why one should have bought near the 1400 level. The rising pattern from 1396,56 looks impulsive and could end today near 1440. The following correction (1415?) could give us a clue on what to expect the following weeks. More upside action or the break of 1400 and the start of a correction?

For more info on how to trade this index don't hesitate to contact me. Thank you for reading my thoughts.

Profits from our analysis in GOLD and COCOA

 Gold is now above 1700$ and has the potential to move higher. Our confirmation of the upward move was initiated from the break of 1630$ resistance, but we noted many times that one could go long at 1560-70$ with 1525$ as a stop. Even if one only bought when gold broke out, profits of 70$ per ounce would be greatly appreciated. Resistance lies at 1800$. A decent pull back could be seen at those levels. In the short term, trend remains upward with a stop at 1688$.

COCOA was another of our suggestions of a starting new upward move and it looks like we are at the start of it. Resistance at 3000$ could be the first pause of this rise. 2550$ could be used as a short term stop loss, but the basis of this upward move is at 2400$.

I hope my analysis has proven profitable to most of you and I want to thank you for taking the time to read my posts.

S&P next big move

 S&P still moves in a sideways manner with no clear impulsive move either up or down. Support at 1397 if broken will the push the index lower towards 1380. This scenario has slightly more chances than the bullish one. If this happens, I expect the decline to end at or near 1380 level.

The bullish scenario needs to hold the 1397 spot and then break above the sideways movement of the last few days. The resistance level is at 1412-16.

If this level is broken then most probably a new upward wave will have started  with target above 1430 towards 1450.

Thank you for taking the time to read my post.

If you need further assistance in trading this index don't hesitate to contact me.

Microsoft to retest March highs

One of my alerts for this week was related to the price movement of MSFT.  This stock is testing very important resistance. Triple top at 31$ looks like it is time to be broken upwards. Breaking this resistance could signal a move higher towards 33-34$ after testing 32,50$ March highs.

The upward move looks impulsive after a double bottom at the area around 28$. The decline from 32,50$ is a 3 wave move, thus a corrective one. It could very well be just the first part of a bigger correction. This would make it more difficult for the stock to move above 32,50$ highs. However we should also take into consideration the scenario where the correction is over at 28$ and MSFT is heading higher within a new impulsive wave. 

For the short term, 30$ should not be broken if the stock is to retest 32,5$. First positive signal is enabled if the price moves above 31$.

Thank you for taking the time to read my post.

Gold and Silver just started their upward move

 Our bullish view on Gold and Silver is still paying out and is not over yet. This blog has noted many times through my analysis that Gold has started breaking important resistance levels. From the 1560$ level we mentioned that support of 1525$ was very important and since it was not broken, Gold could try and break the upper resistance of the triangle. Now that Gold is at 1690$ our first target has been achieved. But I believe this rise is far from over. Gold has just started his upward move towards 1900$ and why not even further. The internal movements of this rise in Gold will be closely monitored and more updates will be posted here soon.

Silver is right behind Gold. The rise in Silver looks impulsive and resistance ready to be tested. If Gold continues, as we think it will, Silver will also break above 32$. This move has all the necessary support to reach 40$ in the medium term. Silver is breaking a similar sideways triangle as Gold, and the signal we get is very bullish.

Our primary focus is Gold, as I think will move first and faster towards our targets, but Silver should also be taken under consideration as it can prove a very profitable trade as well.

As always risk management and stop levels are very important to be planned ahead. If you need help in trading these commodities don't hesitate to contact me.

Thank you for reading my thoughts.