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The US stock market review for 17/11/2010 2010-11-18​

On Wednesday the US stock indices closed in different directions. The Dow Jones Industrial Average fell by 15.62 points, or by 0.14%, to 11007.88 points. The Standard & Poor’s 500 grew by 0.25 points, or by 0.02%, to 1178.9 points. Nasdaq Composite edged up 6.17 points, or 0.25%, to 2476.01 points. The shares of financial sector led the falling after The Wall Street Journal announced that the US Federal Reserve System would require all 19 banks that passed the stress-tests during the height of the financial crisis to undergo one more capital appraisal and their ability to absorb the losses under the negative economic scenario. According to The Wall Street Journal, the Federal Deposit Insurance Corporation is conducting about 50 criminal investigations against former executives, directors and employees of the US banks, which collapsed since the beginning of the financial crisis.
Bank of America quotes dropped by 32 cents, or by 2.7%, to $11.62. J.P. Morgan Chase shares declined by 43 cents, or by 1.1%, to $39.18. The securities of Wells Fargo fell in price by 33 cents to $26.86.
The market was supported by the consumer sector shares that showed strong advance after release of the positive reports on income of large retail companies for a second day in a row. Target stocks surged by $2.08, or by 3.9%, to $55.62, Wholesale Club shares rose by $1.37, or by 3%, to $47.54. Though a day earlier Wal-Mart Stores and Home Depot published positive earnings reports, the shares of these companies decreased by 0.9% and 2.8% correspondingly.
As it became known on Wednesday, the US consumer price index increased by 0.2% in October amid the price rise for petrol, the forecast was 0.3% rise. The core inflation remained unchanged for the third consecutive month. Meanwhile, in October the US housing construction fell to its lowest level in 18 months, this became a reminder about the weak recovery of the housing sector. The US housing starts reduced by 11.7% and stood at seasonally adjusted 519 000, and building permits grew by 0.5% to 550 000.




Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010

 

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Crude Oil. New buy opportunity (Daily Signal), November 18, 2010 2010-11-18​

Oil's recent symmetrical movements have created many buy and sell opportunities for us. Black gold's price falling from the recent record highs of 88.50 to the 80.00 low is forming a new buy opportunity, with the level of 80.00 US dollars per barrel of oil serving as a strong support level which may yet reverse the trend line back upwards. The positive deviation on the MACD indicator confirms our confidence in the bullish prediction.
At any rate, entry into a buy position can be only carried out if the four-hour bar closes above the upper border of the range pattern at 81.70 US dollars. The line serves as the resistance level and buy trigger should it be breached from below. To prepare for the expected upwards movement, one may place three realization goals, with the first placed relative to the 83.20 resistance level, the second – relative to the 84.30 resistance level, and the third – near the resistance level of 85.30 US dollars per one barrel of oil.







Performed by Gerardo Porras Palomino, Analytical expert
InstaForex Companies Group © 2007-2010

 

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EUR/USD Technical Analysis. Support And Resistance Levels For November 19, 2010 2010-11-19​

Today Technical Levels :

Breakout Buy level : 1.3711.
Strong Resistance : 1.3702.
Original Resistance : 1.3689.
Inner Sell Area : 1.3675.
Target Inner Area : 1.3642.
Inner Buy Area : 1.3609.
Original Support : 1.3596.
Strong Support : 1.3582.

Today Outlook :

Yesterday the EUR/USD pair reached the level of 1.3625 and now it seems that the pair will re-test the mark of 1.3600. If today the pair breaks through 1.3625 again, then there is a possibility that the EUR/USD will move upside to 1.3675 (the Hesitation Level) as a first target before it reaches the level of 1.3700. In case the uptrend is strong; the mark of 1.3725 will be a second target for this pair today. However if this pair goes in the opposite direction (down) bellow 1.3575, it seems this currency pair will reach the mark 1.3525 as a first target before it approaches 1.3500. If today the downside momentum is strong then the EUR/USD today goes to the level 1.3475 as a second target. Nevertheless, please remember today is the third Friday, many option position will expire today, so please pay attention to an unexpected volatility and movement today.



Performed by Arief Makmur, Analytical expert
InstaForex Companies Group © 2007-2010

 

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Movement Forecast for the British Pound by the Market Profile for November 19 2010-11-19​

On Thursday the market profile for the British pound formed a trend day.

A fair price area stood in the range of VAL – 1.5886 and VAH – 1.6001. The point of control POC of yesterday was formed around 1.5908.





Forecast for today:
The British pound is trying to continue its up-going movement. In case of growth as a first resistance level will come the lower level of a fair price VAL of November 12 – 1.6056, and then the point of control POC of November 15 fixed near 1.6066.

I recommend to open more conservative short positions as soon as the pair touches the lower fair price level VAL of November 11 – 1.6108.

You can try opening aggressive long positions at the price lowering to the Point of Control of today 1.6026. More conservative longs will enter at the level of 1.6001.

Performed by Maxim Magdalinin, Analytical expert
InstaForex Companies Group © 2007-2010

 

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USD/JPY Technical Analysis. Support And Resistance Levels For November 19, 2010 2010-11-19​

Today Technical Level :

Resistance. 3 : 83.93.
Resistance. 2 : 83.77.
Resistance. 1 : 83.60.
Support. 1 : 83.39.
Support. 2 : 83.23.
Support. 3 : 83.06.

Today Outlook :

If today the USD/JPY can reach the level of 83.75 and break out it, there will be a possibility that the USD will strengthen and have a chance to reach the mark of 84.00. But before this pair goes to these levels it must face with today Resistance. 3 at 83.93. Usually after hit this level, this pair will reverse to downsides between 10 pips to 20 pips. In case the USD/JPY reaches the Resistance. 3 level and still goes up to the mark of 84.38, this will indicate the strong Bullish Momentum. On the other hand, if today this pair moves below the level of 83.25, then it can reach the level of 83.00 again. In case the downside tendency is strong enough, the mark of 82.75 will be probably reached by this currency pair today; but before this situation happen, this pair will be facing with today Support. 3 at 83.06. Usually after hit this level the USD/JPY will reverse upwards between 10 pips to 20 pips. If after hit the Support. 3 this pair is still going down to the level of 82.62, this will indicate the Bearish momentum is strong today.

Performed by Arief Makmur, Analytical expert
InstaForex Companies Group © 2007-2010

 

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EUR/USD Intraday Technical analysis 2010-11-19​

The spot rate is currently testing the upper limit of its medium-term downtrend channel at 1.3670 and seems initiate an output. A breakthrough of this area will provide a significant potential for the beginning of an upward trend.
According to previous events, the market indicates a bullish opportunity as soon as the spot rate has broken out its resistance level at 1.3670 with a 1st objective of 1.3750 and then 1.3780. A breakthrough of 1.3640 will invalidate this scenario.



Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2010

 

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GBP/USD Intraday Technical analysis 2010-11-19​

The spot rates approach the upper limit of their medium-term downtrend channel at 1.6095 suggesting a decline in the short term. However a breakout in that area will free up a significant potential and begin an upward trend.
According to previous events, the market indicates a bullish opportunity as soon as the spot rate has broken its resistance level at 1.6095 with a 1st objective of 1.6160, then 1.6190. A breakthrough of 1.6070 will invalidate this scenario.







Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2010

 

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GOLD Intraday Technical analysis 2010-11-19​

It seems Gold is forming a pattern "Head-shoulder", the upper limit of the shoulder is at 1366. A breakthrough of this zone will invalidate this scenario and release a significant upside potential.
According to previous events, the market indicates a bullish opportunity as soon as the spot rate has broken its resistance at 1366 with a 1st objective of 1376, then 1384. A breakout in 1364 will invalidate this scenario.



Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2010

 

[BudakFx]

USD/JPY Intraday Technical analysis 2010-11-19​

The spot rate approaches the lower limit of its medium-term bullish channel at 83.20 suggesting a rebound from this level. However a break of this zone would free a large potential downside and initiate a new trend.
According to previous events, the market indicates a bullish opportunity on the level of 83.20 with a 1st objective of 83.90, then 84.10. A breakout of 82.90 will invalidate this scenario.




Performed by Albert Fitoussi, Analytical expert
InstaForex Companies Group © 2007-2010

 

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The technical analysis of the USD/CAD for 19/11/2010 2010-11-19​

Support levels: 1.0160, 0.9980, 0.9930
Resistance levels: 1.0385,1.0513, 1.0680

On a 4-hour graph the rollback of the USD/CAD currency pair was limited by the support level of 1.0160. Recently, the pair traded in the range of 0.9980-1.0160. The breakout of the important resistance level changed the viewpoint to bullish. As it was mentioned earlier, if the uprising movement continues then the advance with the target at 1.0385 is expected. Further, the breakthrough of 1.0385 will denote that the rollback from 1.0680 is over, and in this case the growth is expectable.
On the other hand, if the USD/CAD reverses and breaks out the mark of 0.9980, then this will lead to the decline with the target at 0.9930.
In a midterm, the consolidation from 1.0855 has not ended yet and another low should be awaited. Nevertheless, in case of the reversal the breakout of 1.0680 will confirm that the consolidation ended as well as that the downside trend from 1.3063 is broken through. In this case it is expected that the USD/CAD will move upside to the Fibonacci correction level 38.2 from 1.3063 to 0.9929 at 1.1126 with the next target at the Fibonacci correction level 61.8 at 1.1866.




Performed by Vladimir Donin, Analytical expert
InstaForex Companies Group © 2007-2010