Chip The Chartist - 2013-01-13 538x218

Chip The Chartist Weekly Report – 13-Jan-13

A look at other markets this week for a change as they are quite interesting in my view – Gold, the FTSE and the NASDAQ.

I am still Bullish of Gold for lots of reasons mainly because so many Dollars, Euros, Pounds and now Yen are being printed.

This 4 Hour chart shows a clear Downtrend but when things change will the Bulls take charge again?

Chip The Chartist - 2013-01-13 - GOLD 4 Hour Chart

GET INVOLVED
This set up requires some evidence that the Downtrend is over which means that first the (Down)trend line has to be broken. After this the next key level is around $1,700 where the previous Lower High was made on 2nd January.

I personally believe we need to see a break and close above the $1,700 level to be Bullish of this precious metal.

Entry
On close of or on a break above the High of the candle when one closes above the $1,700 level.

Stop
An aggressive Stop would be placed below the Low of the “trigger” candle. Much more conservative would be below the Lower Low made on 4th January.

Target
Taking a Long term view new highs beyond $1,920 do not seem unrealistic this year although there will probably be some resistance around the $1,900 level and certainly at $2,000 (my personal Long term target for Gold this year).

Chip The Chartist - 2013-01-13 - FTSE Weekly Chart

GET INVOLVED
The FTSE as well as other Stock markets is making Highs not seen since last year.

Entry
Buying at these levels is risky as most Stock markets are Short term overbought. Potential Entry to take part in this Bullish market would be on a pullback to the 52 Week Moving Average or the trend line which has been in place since 2009.

Stop
Depending on Entry, Stops below the 52 Week Moving Average and/or the trend line would be appropriate.

Target
There was a reaction High put in at 6,377 in 2008 which may provide some resistance but after that the all time Highs are around the 6,750 level.  Both are feasible long term targets but surely the wind will be taken out of these sails before the latter is hit. I believe 6,750 to be an unrealistic target in the next 12 months.

Chip The Chartist - 2013-01-13 - NASDAQ Weekly Chart

GET INVOLVED
One of the best performing markets since 2009 has been the NASDAQ, it has more than doubled in value. It is still one of the most impressive and consistent trends out there at present and certainly one with further scope for up side.

Entry
Entry on a retrace to the 52 Week Moving Average would present value with a retracement to the trend line providing the best value.  That said even Entry around current levels seems reasonable value if one has the view that an attempt will soon be made on the high made in September 2012.

Stop
As with the FTSE trade previously, depending on Entry, Stops below the 52 Week Moving Average and/or the trend line would be appropriate.

Target
For sure some profits should be taken around the September 2012 high (around 2,875) and a breakeven Stop introduced on any remaining position. Following this there is no real near term resistance and the Stop can be trailed below Higher Lows and the trend line until this Bull market runs its course (which could be many years).

[notify_box font_size=”13px” style=”green”]Click HERE for more Chip The Chartist[/notify_box]

[hr]

DISCLAIMER & COPYRIGHT

This report is based on my analysis on my charting package. It may differ to yours as it can be affected by time, market movements, charting packages and broker prices. I accept no liability for loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on any information in this report or analysis.