The daily chart above shows that the June Eurocurrency futures have reached the 1/2 point of the second bear market box which stands at 122.12. Moreover the market has dropped a bit below 123.34, the 3/4 point of its historical range of 82.73 to 136.87. (A note on the chart: the bar which should record the range for Tuesday, May 31 is missing!)
The rejection of the EU treaty by the French sent the market down sharply and important lows are usually associated with bad news. My conclusion is that the Eurocurrency is about to rally several hundred points.
At this juncture I think the best thing to do is wait for the market to trade sideways for three or four days at current levels and then to take long positions as close to these support lines as possible.
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