Dominic Picarda’s Trading Pick 13th November 2013

By Dominic Picarda.

The DAX, FTSE and S&P have now done very little for a couple of weeks. However, I do not see their sideways inaction as topping behaviour. Tops typically involve more volatility than this, which leads me to believe the indices are heading higher, rather than lower. I would appreciate it if they were to come off a bit more, as I think that this would provide a better springboard for the customary end-of-year rally. I just doubt that they will oblige in this way, however. As such, I keep looking for long positions here, as well as shorts in GBPUSD, EURUSD and gold.

My next update will be on Friday, 13 November.

I shall be speaking about “the Ideal Portfolio” at the Lecture Club in London on Thursday 28 November

See my video interview with Über-bear Brian Whitmer of the Elliott Wave Institute here.

Gold 

In line with my call, gold rallied briefly to its 13-fourhourly EMA and then sagged to and through my target at $1265. I suspect the current bounce will give way to further selling and I have an objective at $1251.

Support: $1276.24 – Resistance: $1336.74

Support: $1252.11 – Resistance: $1323.27

Support: $1239.11 – Resistance: $1306.11

Support: $1224.47 – Resistance: $1292.67

DAY: Short another reversal around the 21-fourhourly EMA

POSITION: None.

Dominic Picarda CFA, CMT writes the Trader column at http://www.investorschronicle.co.uk/comment/the-trader

CLICK BELOW TO RECEIVE MY TRIO OF BOOKS EXCLUSIVELY AVAILABLE AT SPREADBET MAGAZINE