Tradepedia’s Founder & CEO Mr. Avramis on CNBCPosted on Monday, October 15 2018 at 12:24 pm GMT+0000
discussing the technical outlook of Gold, DAX, DOW, TASI & Oil
Saudi Market Index (TASI)
The market peaked at 8500, then initiated a bearish correction and then rose up again and reached the 8060 level. After that we had two reversal candles that created a new peak in the market. From this point on, the market dropped aggressively for two consecutive sessions and reached exactly the first Fibonacci target at 7000 before rebounding back aggressively. The question is, when will this Bullish correction end? I expect the correction to reach the 7700 boundary, and from there I expect the initial downtrend to continue and the market to return lower and test the aforementioned low (7000) in the coming days.
In technical analysis we say the trend is expected to continue, until clear signs of reversal are revealed, and there is no clear reversal signs at the moment, so the most likely scenario for this market is to continue the downtrend.
As we see clearly there was a bearish trend, presented by a series of lower tops and bottom bottoms, until the point at which the market posted a higher bottom at 1180, indicating a bullish reversal could be on the cards. Then the gold continued its rise breaking the previous top of 1212 and confirming the completion of a Bullish reversal. And now I expect prices to target the 1235 level in first place and then continue the uptrend.
Oil is in a clear uptrend presented by a clear series of higher tops and higher bottoms. It recently tested the last top and retreated somehow. This raises some concerns about the trend’s persistence, but as long as the price remains above 64.40 the trend will remain intact. Below 64.40, prices may correct towards the 56.00 level, but currently the most likely scenario is that the markets continue its rally towards the 82.00 barrier.
It is not clear if the trend has reversed so far, the index tried to break the last top but failed and dropped significantly. This decline has found support at rising trend line, which has been standing since May, we now expect a bounce back. The level that we have to keep in mind and that will change the entire picture since a breakthrough it can confirm the completion of a Bearish reversal pattern is the 23000 barrier. If the market breaks this barrier it will confirm that the bullish trend is over and that a new Bearish trend has started.
The index was in a clear downtrend, it broke below 11850 and reached the first target and now we expect it to bounce back to the aforementioned level before falling back to 10900 and even lower.