Technically Speaking

Monthly Analysis: Financial Markets

Source: DTN ProphetX

DJIA: The index closed at 17,929.99, up 142.79 on the monthly chart. The major (long-term) trend remains sideways with resistance at the major high of 18,351.36 (May 2015) and support at the new 4-month low of 16,545.67. The DJIA posted a bullish outside month, indicating it could see a test of its major high, pulling monthly stochastics back above the overbought level of 80%.

USDX: The index was at 95.874, down 0.017 on the monthly chart. While the major (long-term) trend remains down the secondary (intermediate-term) trend is up. This has led to a test of secondary resistance between 96.215 and 97.228, prices that mark the 50% and 61.8% retracement levels of the first wave of the major downtrend from 100.510 (December 2015) through the low of 91.919 (May 2016). The next wave down could result in a test of support between 90.583 and 89.122.

Canadian Dollar: The Canadian dollar was at 0.7710, up 0.0095 on the monthly chart. The major (long-term) trend remains up while the secondary (intermediate-term) trend is sideways. Secondary resistance is at the 4-month high of 0.7987 with support at 0.7601. Monthly stochastics remain bullish, indicating a move into the targeted area of 0.8093 to 0.8278 is likely in the coming months.

Gold: The more active August contract closed at $1,320.60, up $103.10 on the monthly chart. The major (long-term) trend remains up with the August contract moving toward resistance at $1,380.90. This price marks the 38.2% retracement level of the previous major downtrend from $1,923.70 (September 2011) through the low of $1,045.40 (December 2015). The 50% retracement level is up at $1,484.60. However, monthly stochastics are nearing the overbought level of 80%.

SPGSCI: The commodity index closed at 374.03, up 3.09 on the monthly chart. The major (long-term) trend remains up. However, initial resistance is pegged at 384.95, a level that marks the 23.6% retracement of the previous major downtrend from 762.22 (April 2011) through the low of 268.41 (January 2016). Monthly stochastics remain bullish.

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