I've talked about divergences in commodities, currencies and equities
since February because i've been noticing markets have not followed usual correlation trends. Here are some charts that I've been following for some
time. Not sure if this is setting a long term trend change in correlations across markets or its a short term anomaly. My intuition says its the later since drop in commodity prices especially Copper since its usually a good leading indicator for macroeconomic growth.
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Closing below 38.2% retracement i.e. 26050 shows weakness in it towards next support level of 25570.
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ReplyDeleteCRUDEOIL (18 DEC) TREND: CONSOLIDATE
RES 1: 6050
RES 2: 6100
SUPP 1: 5950
SUPP 2: 5900
STRATEGY: SELL ON HIGHS
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ReplyDeleteMCX-SX CALL: BUY USD/INR (DEC.) ABOVE 61.95 TG- 61.82/61.62/61.32 SL-62.25
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