Avramis Despotis Founder & CEO of Tradepedia on CNBCPosted on Monday, April 2 2018 at 10:39 am GMT+0000
discussing US Equities – is the long awaited trend reversal here?
USD: Starting with the US Dollar and the Dollar index, we had an obvious bearish trend that is expected to continue, but in the last few weeks we’ve been witnessing some sideways movements that reflected some kind of uncertainty in the Dollar. The dollar fell strongly and this lead to a larger decline in the index but also the fact that the Euro and the Sterling witnessed some resistance has resulted in those sideways movements that are expected to continue in the forthcoming future, we do not expect large movements in the Dollar index because the markets are uneven, Euro and Sterling are rising and USD and Australian dollars are falling so the index expected to continue its sideways path.
Bitcoin: The prices of Bitcoin have fallen, then rose slightly but failed to continue the rally and have created a lower Top, that is technically viewed as a negative signal. And thus, a break the 6000$ barrier will be important, I know this may seem extreme, but it is expected to lead the way towards 2500$.
Gold: Gold is still ready for a strong rally, a break of the 1375$ barrier will lead the way towards to 1530$ and 1780$ per ounce because it will confirm a higher Top in place, and thus the end of the bearish path. The Gold has already broken the descending channel line and since we are looking at the 1-month chart, remember breaking the 1375$ might need time.
S&P500: When looking the S&P 500 long term charts we can notice the formation of a lower Top and this indicates that a significant reversal pattern could be on the making in the long run. Breaking the 2525 level which coincide with the lower-end of the ascending channel, will further strengthen the reversal signal and lead the way for a move towards to 2360 and 2100. Which is important to notice here, is the negative correlation between the Gold and the S&P500 and both charts are supporting the long term reversal scenario that became very likely in my opinion.