By The Gold Report
Technical analyst Clive Maund examines stock market charts and discusses what he sees as possible consequences of the Syria strike.
On the 6-month chart for the Dow Jones Industrials, it looks like it is rolling over and set to drop again after arriving at the red downtrend line shown. However, the pattern that has formed over the past few weeks could be an intermediate base that might lead to a significant rally, especially as it has developed just above a still rising 200-day moving average.
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The latest Hedgers chart shows that Smart Money is a lot more bullish than Dumb Money, which also makes a rally more likely.
Chart courtesy of sentimentrader.com
Fundamentally, a reason for a rally next week would be the West seemingly getting away with striking Syria last night, without any immediate adverse consequences. This could lead to a sense of relief and perhaps a little euphoria in the market.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.
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1) Statements and opinions expressed are the opinions of Clive Maund and not of Streetwise Reports or its officers. Clive Maund is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Clive Maund was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
Charts provided by the author.
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.