#Brent #DAX It’s been nearly a year since we last irritated ourselves (link) with a look at the clown farm, The Banking Sector. Unsurprisingly, it did NOT escape from trouble, it achieved our initial drop target, and now is closing (finally) on our secondary target, the point at which we hope for a rebound.
Or will it?
The immediate situation is of weakness below 3360 still indicating the potential of 3236 and hopefully a bounce but we’re pretty concerned. A break below 3236 shall move the index below the long term RED uptrend and suggest the potential of 3078 making a guest appearance. This would tend be a jolly poor show as while there will be hope for a bounce as the index meets the lows of 2016 and the Brexit vote, the impact of breaking the uptrend since the banking crash of 2009 will easily allow a third target level to make an appearance, a completely absurd looking 2460.
To be honest, it’s not as absurd as a major attraction below RED calculating at just 320 points. Obviously, an utterly silly number as we can surely trust the banking system…
In the interests of fairness, there’s quite a lot arguing for a recoil if 3236 makes an appearance and it’s certainly getting close to this target level. If any strength is indeed evident, it could bounce anytime soon. This being the case, movement now above 3467 should prove capable of a market lift to 3529 points. If exceeded, secondary calculates at 3840 and a coming challenge of the downtrend since 2008. We’re not inclined to any optimism over this scenario, just yet.
About the only conclusion we draw suggests some misery remains within the retail banking sector but there appears a chance of some recovery soon. We can hope!
|
Time Issued |
Market |
Price At Issue |
Short Entry |
Fast Exit |
Slow Exit |
Stop |
Long Entry |
Fast Exit |
Slow Exit |
Stop |
Prior |
|
12:07:19PM |
BRENT |
58.43 |
57.9 |
56.61 |
55.04 |
58.75 |
58.8 |
59.25 |
59.84 |
58 | |
|
12:41:38PM |
GOLD |
1512.97 |
Success | ||||||||
|
1:26:37PM |
FTSE |
7131.75 | |||||||||
|
1:34:09PM |
FRANCE |
5301 | |||||||||
|
1:36:01PM |
GERMANY |
11578.86 |
11418 |
11367.5 |
11295 |
11505 |
11585 |
11657 |
11788 |
11490 |
‘cess |
|
1:39:52PM |
US500 |
2891.29 |
Success | ||||||||
|
1:41:58PM |
DOW |
25918.3 |
‘cess | ||||||||
|
1:46:53PM |
NASDAQ |
7602.87 |
Success | ||||||||
|
1:55:55PM |
JAPAN |
20605 |
‘cess |