Markets technical view and signals for the week 15-19 October 2012

Some of the signals have been posted on Facebook  during the week. You can follow updates directly from our twitter stream or by liking us on Fb here.

Amsterdam’s AEX  is maybe the strongest of the European indexes, down only 0.34% during the last trading day of the week. The algorithms, however, have issued a short alert (yellow triangle) after Friday’s close. Yellow triangles are sell signals in downtrends and strong alerts in ranging markets. When coupled with red triangles they become short signals (when the trend is down or ranging) and powerful alerts, signalling possible corrections when the trend is up.

The alert on AEX coupled with the zone of resistance at 336 should make long suspicious here. We don’t have a short in play but it is a play we are considering for the week ahead. First targets 330 -327.

A little worse situation on the french CAC40 where the weakness signalled by the inverted hammer of Thursday has been confirmed by the red candle of Friday. The system is already short with a first target of 3460. The ranging action of the index in the last couple of months and the proximity of the bollinger band make the short worth trying here in our opinion.

German index, relatively stronger than the CAC40, is however very close to the bollinger band. The system was long from 7230 (green triangle) and it has closed the position on the short alert triggered on Friday.

Very weak italian index with a 2% drop on Friday. Altough the red triangle didn’t show up, the indicators on which it is based were just a few points below the trigger. We have shorts in play for the week with targets 15650 at least.

The long triggered on the 15th of October at 1430 (posted here) has been stopped out by the powerful action of Friday. We registered a short alert on Wednesday last week (posted here) that was an indication to raise stops. The short signal is in play now but I would like to consider an entry point higher than 1430. 1445 has my attention.

Good luck for the next trading week, don’t forget to follow us here  if you are interested in intra-week  trading signals.

Mktgeist team

One Response to Markets technical view and signals for the week 15-19 October 2012

  1. Pingback: Markets technical view and signals for the week 22-27 October 2012 « Mktgeist blog

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