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Why Major Trends Are Important

Adam Hewison - MarketClub

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Indices

Major Trend : BULLISH
Intermediate Trend : BULLISH

One lesson I learned a long time ago in my trading career was to never fight the trend. Trends tend to persist longer and go further than most expect. Yesterday, the Dow 30 gave a signal that it was once again resuming its upward trend, joining the S&P 500 in a positive trend. The NASDAQ is in a neutral and sideways mode. Watch today's video to see my upside target levels.


Gold

Major Trend : BULLISH
Intermediate Trend : BEARISH
Short-Term Trend : BEARISH

While the short-term outlook for gold is still bearish, Gold (FOREX:XAUUSDO) is now in a Fibonacci area of support between $1,280 and $1,266. The latter price being a 61.8% retracement from the highs that were seen on March 16th and the lows set last December 19th. With the monthly Trade Triangle still positive, I continue to be positive longer-term on gold. However, I want to see it consolidate just a little more, then turn both the intermediate (weekly Trade Triangle) and the short-term (daily Trade Triangle) Triangles positive.

The Dollar

Major Trend : BULLISH
Intermediate Trend : BEARISH
Short-Term Trend : BULLISH

At the present time, the Euro/USD (FOREX:EURUSD) is in a trading range based on a -55 Chart Analysis Score. Look for this cross to continue to be choppy until it reestablishes its upward trend in favor of the Euro. I would look for support to come into this market around the 1.3700 level. I am presently neutral on this market.

Crude Oil

Major Trend : BULLISH
Intermediate Trend : BEARISH
Short-Term Trend : BEARISH

The Crude Oil (NYMEX:CL.K14.E) market has a negative tone to it in the intermediate and short term. Based on our approach to trading crude oil, you should be short this market from the $99.40 a barrel level. Presently the market is trading right around that area. I would protect that position for the moment with stops at the $102 area. Should crude oil close below $99 on Friday, I would view that as negative, as the market would have created an bearish "engulfing line" to the downside. Watch tomorrow's close on the May contract.

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