FYI | Sep 15 2013
The uptrend holds for a 13th week. All previous resistance levels have been broken and the market looks for the next direction. The short term daily stop for Monday is 5235 and the weekly stop is 5228 confirming the current levels in the market to be a critical pivot point for the medium term direction of the market. The important supports for next week are 5220 and 5206. Upside resistance is limited and a break of last weeks high will see another breakout above 5300. AUDUSD has retested the 0.932 peaks and is back at the 0.923 pivot. SP500 is trading up against the 1690 resistance and also looks for a medium term direction.
The market has broken out and this week will be important for the medium term direction of the markets. Futures expiry on Thursday will see volume increases as positions are rolled to December.
Bulls continue to hold gains with limited upside resistance. A close above 5228 next week will continue the trend. The 13th week of the uptrend shows no resistance above 5256 and break of this level will target 5300.
Bears got squeezed last week. The stop for next week is around current levels indicating any weakness next week is expected to confirm a medium term peak in the market. A close below 5228 next week will be the start of a downtrend. Downside target is 5148. A break of 5148 will lead to a rapid sell off – Flash crash.
iQUANT FORECAST RANGE 5148 – 5256
PIVOT POINT 5228
iQuant predicts the gold price meltdown.
Big move in the gold price this week. The iQuant weekly stop for the week was 1388.91 and the market held this level for Monday. The sell off started on Tuesday and a break of the last weekly support at 1362 saw the Algorithmic trades to go into meltdown – classic flash crash
Review of prediction from 7th September 2013 for last week
The uptrend holds for a 12th week. International markets are off recent peaks and the local market had a peak above 5200 this week. Short term the daily stop for Monday is 5120. The important supports for next week are 5125 and 5106. AUDUSD has retested the 0.923 long term resistance level and awaits direction. SP500 is trading the 1630 – 1660 range also looking for direction. The flat trend and limited upside indicates a neutral position and we continue to wait for the long established supports to fail.
Bulls continue to hold gains with limited upside. A close above 5084 next week will continue the trend. The 12th week of the uptrend shows no resistance above 5168 and break of this level will target the 5209 peak.
Bears are testing the monthly support at 5106 A close below 5084 next week will be the start of a downtrend. Downside target is 4949. A break of 4949 will lead to a rapid sell off – Flash crash.
iQuant Weekly outlook released 23rd August 2013 – “The 10th week of the uptrend shows no resistance above 5152 and break of this level will target 5218 – de ja vu” – MARKET PEAKED AT 5209
iQUANT FORECAST RANGE 4949 – 5168
PIVOT POINT 5084
ACTUAL 5148 – 5257
In a repeat of last week most of the price move occurred on Monday with the market breaking the 5168 upper resistance. As predicted a breakout occurred and the market record a 1.68% gain for the week. On Thursday the high was 5257 just short of the May 2013 high at 5260. The weekly gain was the biggest gain since the week ended 12 July 2013. The last three days of the week recorded very low volatility as the market traded in a 48 point range between 5209 and 5257. The bulls had a good week breaking all resistance. Volumes were below average as many traders remained cautious.
Log Into http://www.iquantsystems.com to view real time reports on ASX top 20, international indices, currencies and commodities.
ASX200 report tracks the September ASX200 SPI. The ASX200 index is currently trading at a 5 point discount to the futures. All levels in this report refer to the ASX200 SPI futures
The September 2013 futures expire on 19th September 2013
The information contained in this communication is general information only. Any advice is general advice only. Neither your personal objectives, financial situation or needs have not been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice. Iquant Systems Pty Ltd (CAR No.435627) is a corporate authorised representative of Avestra Capital Pty Ltd (AFSL No. 292464).
Copyright © 2013 Iquant Systems, All rights reserved.
Technical limitations
If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.
