FYI | Dec 17 2010
FNArena has added another video to its Investors Education section on the website.
ATW's Jerry Simmons explains why he thinks the outlook is for a stronger Aussie dollar, not a weaker AUD/USD as is being predicted by other chartists. Similarly, crude oil prices are believed to be poised for higher, not lower prices. The US bond market should see some relief. Total duration of this video broadcast is 47 mins.
Summary
In this video, Jerry Simmons, Lead Mentor and Co-Founder of the Advanced Trading Workshop, Inc. (“ATW”), New York, provides another follow-up analysis on his recent AUDUSD analyses, as well as looking at Crude Oil price action and the 30-year US bonds.
Comments
AUDUSD
The AUDUSD is definitely setting up for a RBO (reversal break-out) above parity (1.000). We need to see spot prices above 1.050, though, to see “role reversal” at the parity level turn resistance into support. We are on the lookout for 2 consecutive 60 min bars whose low is greater than the upper boundary of the resistance zone, i.e. greater than 1.000 = par.
CL = Crude Oil
Crude Oil has potentially completed Wave 4 of a 5w move and is poised to go higher. For several reasons, extremely bullish structure is developing after 8 months of price basing and forming 2 sets of Double Bottoms.
The next three upside price targets are:
1. $93-$95. This level represents major resistance. If this level is hit, prices are likely to pull back for 2 – 3 days before continuing the up move.
2. $97-$98 Jerry reckons this target will be hit in the next 2 – 3 weeks.
3. $100 –$102.
On the other side of the equation, a price move below 86.00 will do significant damage to the bullish scenario and could result in an extended move to the downside, because it would trigger sell stops of bulls exiting their positions and new bears entering into new short sales.
US (30-year bonds)
This market is very oversold, 2 – 3 days of retracement to the upside are overdue. A bullish wedge could be forming. However, that’s short term. The long term picture is that the upside reversal will only provide a selling opportunity, as the down move has much potential to continue, especially since major turning points in the 30-year bond market often happen in December.
Again, we are looking for a weekly reversal break-out. The expected move down, following a brief reversal, will signal higher yields, i.e. higher interest rates, with obvious consequences for the equities markets.
To view the ATW Strategic Prep Video (originally from November 29, 2010) titled “AUDUSD RBOs, CL Local S/R, US” click HERE or visit the FNArena Investors Education section of the website.
Here's the direct link: https://www.fnarena.com/index2.cfm?type=dsp_front_videos&vid=19
All views expressed are Jerry Simmons's, not FNArena's (see our disclaimer).
Jerry Simmons has over 25 years of full-time trading experience. He is the senior partner and head mentor for the “Masters” Programme within the education system at New York based Advanced Trading Workshop (ATW). ATW recently set up shop in Australia through the establishment of ATW Australia (since mid-2010).
FNArena is pleased to have Jerry Simmons as a highly valued contributor to its service which aims at both educating investors and assisting them with their own market analyses.
About ATW Australia
Founded in June 2010, ATW Australia is a “one-stop-shop for all a trader needs to succeed”: quality education for new traders, superb advanced trading education, fast unfiltered data, a world-leading trading platform, customer oriented competitive brokerage, quality ‘Made in the USA’ specialized trading computers, trading magazines, and the all-important psychological mentoring and coaching for traders. The trading educational products are provided by the Advanced Trading Workshop, Inc. in New York, all other services are provided by a network of partners that were chosen based on their superior products and services in their specific field of expertise. FNArena is one such partner.
To learn more visit www.advancedtradingworkshop.com.au.
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.
