Weekly Update – 29 September 2019 – LS Trader

Stocks

Stocks declined this week for the second consecutive week. It’s interesting to note that resistance held in price and at the 60 level on the RSI, which keeps the RSI in the bear range even though the long-term price trend is up.

Commodities

Gold tested support on Friday and printed a bullish hammer pattern. The long-term trend remains up, but the support zone around 1488 seems key to the short-term price action.

Palladium was, once again, the strongest of the metals, as it rallied to new all-time highs, and made all all-time high close.

The energy markets remain in the middle of the range, with the long-term trend down for all markets except for Natural Gas.

Currencies

It’s been a bullish week for the Dollar, as the Dollar Index made a new high close for the current move. Naturally, this coincided with the Euro making a new low. Sentiment remains bullish for the Dollar and bearish for the Euro. There are some possible bullish factors for the Euro, which may lead to a bounce in addition to sentiment, and these are momentum divergence between price and RSI, and heightened volatility.

Interest rate futures

Interest rate futures rallied for a second straight week, with the long-term trend still up. A test of the recent highs cannot be ruled out in the coming weeks.

The RSI is now back to testing the 60 level having held at bull market support at the 40 level at the September the 13th lows. A decisive move above 60 on the RSI would suggest further strength towards recent highs.

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