Tuesday, July 19, 2011

7/19/2011 - EUR/USD

THE VULCAN REPORT
Review of E-MINI EURO (US@EEC.1)
as of Monday, July 18, 2011


Today's Price Action


Change   prices closed lower than they opened.  0.0012 (0.09%)  with strong Bids going into the close.


A hammer occurred (a hammer has a long lower shadow and closes near the high).  Hammers must appear after a significant decline or when prices are oversold (which appears to be the case with E-MINI EURO) to be valid.  When this occurs, it usually indicates the formation of a support level and is thus considered a bullish pattern.


A hanging man occurred (a hanging man has a very long lower shadow and a small real body).  This pattern can be bullish or bearish, depending on the trend.  If it occurs during an uptrend it is called a hanging man line and signifies a reversal top.  If it occurs during a downtrend (which appears to be the case with E-MINI EURO) it is called a bullish hammer.


A long lower shadow occurred.  This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).


A spinning top occurred (a spinning top is a candle with a small real body).  Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close).  During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.


Three black candles occurred in the last three days.  Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.


     MARKET SENTIMENT
  
PulseScan Swing Vix


PulseScan:    -13.51
Swing Vix:    -15.38


The Market Pulse is negative since it is trading below its zero signal line.The PulseScan crossed above the Swing Vix creating a UP Trend Channel as of    1 period(s) ago. The Swing Vix is not currently in a topping (above 39) or bottoming (below -39) range.    
A buy or sell signal is generated when the Swing Vix moves out of an overbought/oversold area.  


*The last signal was a Over-Bought Sell 26 period(s) Ago.
The Swing Vix does not currently show any Failure Swings.The Swing Vix and price are not diverging.
      
  *Since the last Swing Vix signal, E-MINI EURO's price has increased 0.09% , and has ranged from a high of 1.4172 to a low of 1.3989.


     MOMENTUM


     MARKET TREND - Currently the TREND is - The UpTrend is still entact with prices holding above trendline support at-   1.3562.


        TREND STRENGTH - ,


TRENDLINE RETRACEMENT
The close is currently Above it's PulseWave Cycle TRENDLINE RETRACEMENT. -   1.3562
The close is currently Above it's Long Term TRENDLINE RETRACEMENT. -   1.3883
The close is currently Below  it's Intermediate Term TRENDLINE RETRACEMENT. -   1.4250 
The close is currently Below  it's Short Term TRENDLINE RETRACEMENT. -   1.4149 


INTRADAY PRICE PROJECTIONS
RESISTANCE   1.4116
SUPPORT   1.3983


WEEKLY PULSE WAVE PRICE PROJECTIONS
PulseWave BreakOut RESISTANCE -   1.4546
PulseWave BreakOut SUPPORT -   1.3812


VOLATILITY
On 7/18/2011, E-MINI EURO closed   
above the lower band by 24.5%.
This combined with the steep downtrend suggests that the downward trend in prices has a good chance of continuing.  However, a short-term pull-back inside the bands is likely.     




Risk Disclosure

General Advice Disclosure: Please note that the advice contained herein is general advice and is for the purposes of education onlyThe risk of loss in trading futures contracts, commodity options, stocks, stock options and forex currencies can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You are reminded that past performance is no guarantee or reliable indication of future results. It has not been prepared taking into account your particular investment objectives, financial situation and particular needs.You should therefore assess whether the advice is appropriate to your individual investment objectives, financial situation and particular needs. You should do this before making an investment decision based on this general advice. You can either make the assessment yourself or seek the help of a professional adviser.


This commentary is not a recommendation to buy or sell, but rather a guideline to interpreting the specified indicators. This information should only be used by investors who are aware of the risk inherent in securities trading. The Vulcan Report accepts no liability whatsoever for any loss arising from any use of this expert or its contents.liability whatsoever for any loss arising from any use of this expert or its contents.


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