General Indices

By, James A. Hyerczyk After several hours of sideways action fueled by trader indecision, the Germany 30 (DE30) index CFD broke out over the downtrending resistance line of a triangle chart pattern on the 30-minute chart. The size of the candlestick indicates strong momentum that could trigger a drive into the Autochartist forecast price zone at 6126.44 to 6208.96. The overall quality of the chart pattern is 7-bars. The initial trend which measures the strength of the trend prior to the chart pattern’s formation is also 7-bars. A 7 to 10 bar initial trend rating usually indicates the presence of a strong trend. Since the breakout was also to the upside, Autochartist has identified this as a continuation pattern. The uniformity rating is a solid 8-bars. This indicator rates the strength of the touches of support and resistance. In this case, it looks as if the support level has been successfully tested numerous times. The 7-bar clarity rating suggests the pattern has...

By, James A. Hyerczyk The US2000 index CFD broke out to the upside through an Autochartist Key Level resistance level at 743.60, signaling a potential move to the forecast price zone at 773.72 to 816.42. Momentum was strong on the initial move through resistance, but follow-through buyers were scare, creating a minor support base. Although the resistance level was penetrated, it appears that traders are still having trouble buying strength due to possible oversold conditions on the 60-minute chart. Although the Autochartist Key Level signal is a simple signal, it often needs outside help to generate the momentum the market needs to follow-through in the direction of the breakout. Although volatility may have triggered this breakout over resistance, the inability to drive it higher may mean the market is going to pull-back into the former resistance level. In this case, old resistance may become new support. In addition to the pull-back to the original breakout level, traders may drive this market back to...

by, James A. Hyerczyk After forming a 3-candlestick short-term range, the support line of a rising wedge chart pattern on the 60-minute chart finally succumbed to selling pressure, triggering a break down and the start of a potential move into the Autochartist forecast price zone at 8573.38 to 8463.31. The overall chart pattern quality is 6-bars. The initial trend which measures the strength of the trend prior to the chart pattern’s formation is a weak 3-bars. The initial trend is down. Since the breakout is also down, the trend change is a continuation. The 7-bar uniformity rating is considered strong. It indicates an above average number of touches or near touches of support as well as the presence of equidistant tops and bottoms. The clarity indicator measures the existence of market noise. It looks for “trading spikes” and “trading gaps”. The slightly above average 6-bars indicates a minimal amount of market noise. The rising wedge chart pattern is a trending pattern. It develops...

by, James A. Hyerczyk Sideways trading action in the Japanese 225 (JP225) throughout the session led to a breakdown through the support line of a triangle chart pattern on the 30-minute chart. The move set up the index CFD for a potential break into the Autochartist forecast price zone indentified as 8514.27 to 8426.46. The overall quality of the chart pattern is rated a below average 4-bars. The initial trend which measures the strength of the trend prior to the chart pattern’s formation is a weak 3-bars. Uniformity measures the number of touches of support and resistance as well as the presence of equidistant tops and bottoms. This indicator is rated 6-bars. The clarity rating is only 3-bars. This means the chart pattern’s “market noise” is well above average. Although there aren’t any noticeable “spikes” or “gaps”, it could have been the huge ranges in the center of the chart that led to the low clarity rating. The triangle chart pattern is a...

by, James A. Hyerczyk The Spain 35 (ES35) index CFD broke out over the resistance line of a channel down chart pattern on the 240-minute chart, setting up the possibility of a near-term rally into the Autochartist forecast price zone at 8592.52 to 8797.65. The quality of the chart pattern is 6-bars. The initial trend which measures the strength of the trend prior to the chart pattern’s formation is also 6-bars indicating a weak, but trending market. The initial trend is up as is the breakout, making the trend change a continuation. Uniformity measures the number of touches of support and resistance. It also rates the occurrence of equidistant tops and bottoms. Clarity looks at the level of “market noise” present. A 6-bar rating means that there is slightly above average “noise”. The channel down chart pattern is a trending pattern. Typically the channel is constructed with parallel lines. In this case, the channel widened, however, the upside momentum was still strong enough...

by, James A. Hyerczyk After failing to extend its recent rally to the upside, the Japan 225 (JP225) index CFD broke through the support line of a rising wedge chart pattern on the 30-minute chart. The move completed the pattern, signaling the start of a potential break into the Autochartist price forecast zone at 8341.62 to 8194.09. The quality rating is a solid 7-bars. The initial trend was down prior to the formation of the chart pattern. The 9-bar rating indicates a strong trend. Since the breakout is in the direction of the initial trend, the trend change is a continuation. The uniformity indicator measures the number of touches of support and looks for equidistant tops and bottoms. This indicator is rated the maximum 10-bars. The clarity rating is a low 2-bars. The chart pattern looks a little disjointed at times, suggesting the presence of “market noise”. The rising wedge chart pattern is a trending pattern. It carries the characteristics of the channel...

by, James A. Hyerczyk The Germany 30 (DE30) index CFD stopped at 5761.65 creating the resistance line of a channel up chart pattern on the 60-minute chart. The subsequent sideways trading action helped create a resistance level. Autochartist is forecasting that this emerging pattern will have a reversal trend change into the uptrending support line. The quality of this chart pattern is a weak 3-bars. The initial trend which measures the strength of the trend prior to the chart pattern formation is rated 1-bar. Uniformity measures the number of touches of support and resistance as well as identifying the presence of equidistant tops and bottoms. The low 1-bar rating suggests weak uniformity. The strong 9-bar clarity rating indicates the absence of significant trading spikes or market noise. The gap in the center of the chart was caused by trading action rather than thin trading conditions. Swing traders may find this emerging pattern attractive. Since the main trend is up, counter-trend traders may consider...

by, James A. Hyerczyk The wide trading range created by heavy volatility triggered a whip-saw like move in the UK100 index CFD market on the 30-minute chart. Early in the session, the market rallied sharply higher from a support level near 5073.00. The subsequent rally stopped short of a resistance level near 5203.00. This triggered an intraday retracement of more than 50% of the session’s range. Autochartist key level analysis has indicated that a support line with a significance rating of 5-bars has been formed at 5099.00. Swing traders should watch this level for a possible bottom. Momentum traders are likely to watch for a break down through this support level. Whether the index CFD turns following a test of this level or breaks through it will be determined by the volume and volatility at the time of impact. Using conventional chart analysis and studying the UK100 using a top-down approach, the daily and 60-minute charts are clearly in downtrends. The breakdown through...

by, James A. Hyerczyk After several attempts to break it lower, the France 40 (F40) index CFD formed the support line of a rectangle chart pattern on the 30-minute chart. The size of the distance between the identified support and resistance levels and the suggested stop loss point under the recent bottom, make this an attractive chart pattern for the aggressive swing trader. This chart pattern is rated an average 5-bars. The initial trend which measures the strength of the trend prior to the chart pattern formation is a below average 4-bars. The uniformity indicator looks for equidistant tops and bottoms as well as the number of touches of support and resistance. Generally speaking, the higher the rating, the greater the number. On this chart, uniformity is rated an above average 6-bars. The clarity rating is also 6-bars indicating a slightly quiet market. The rectangle chart pattern is a non-trending pattern. This chart pattern shows clearly defined support and resistance levels. The support...

by, James A. Hyerczyk The Netherlands 25 (N25) formed Point D of an ABCD Fibonacci Pattern, completing the pattern and setting up the possibility of a retracement into a series of Fibonacci price levels, ranging from 273.95 to 282.85. Since the swing moves from Point A to Point B and from Point C to Point D show lower tops and lower bottoms, the main trend is down, suggesting that the impending retracement will be a counter-trend move. The ABCD Fibonacci Pattern is the backbone of all Fibonacci patterns. What this means is that this pattern, also known as a “lightening bolt” is found in all Fibonacci patterns including the complex Butterfly and Gartley patterns. In addition, this pattern is also created with price and time symmetry, suggesting that it can be used with a “look forward” trading style. As mentioned earlier, based on the swing formation, the main trend is down. The identification of Point D and the suggestion of the rally into...