Markets overview after Brexit

Brexit is the black swan, dated 23rd of June, which is shocking the markets and the 49% of the British.

The markets are on a roller coaster and uncertainty dominates everywhere.
Let’s see what this event changed in the monthly cycle analysing the charts with your new way to identify a trading cycle.

UK100 and Brexit

The UK100, after it raised on hopes of a remain, did a huge dip moving the prices back below the cyclical moving average giving you the first bearish signal.
The stochastic was already under the value of 50 since the 16th of June showing you to not join the little rise between the 20th and the 23rd but to stay FLAT (the signals from the average and the Stoch were different).

Now both of the indicators are BEARISH and until they keep this signal there’s a possibility to try short entries, maybe on a retest of 6.1300 or 6.050.

UK100 brexit

Pound to Dollar (GBP/USD)

Here the trading cycles are telling you to do the best choice in this situation: STAY FLAT.

The stoch is above the 50 line and the price is below the average, a contradictory signal that means:

Keep calm, place your hands far the mouse, wait and see.
Let the market decide its direction.

Anyway, there are two strong resistances above the price, the operative indication could be:

Wait the price to reach 1,40 – 1,41 and see what the cyclical indicators will say at that point.

GBP/USD brexit

SP500

The same indication as for the UK100, little rise before the referendum and a huge drop from the resistances around 2.120 - 2.110.

Now the cyclical indicators are showing a bearish signal let's go with the cycle!

SPX500 H4 (06-26-2016 1118)

The upcoming split: EUR/GBP

Exactly as GBP/USD (the pound is the market driver now), mixed signal from the stoch (K=47,96) and the average (price > SMA), STAY OUT.

EURGBP

The Brexit summary

You saw how the stock market indices after a perfect indication to stay FLAT before the referendum, now are showing bearish signals.

The currencies, instead, after the shock are showing mixed signalssuggesting to use a wait and see approach. (Sound familiar?)

Leave A Response

* Denotes Required Field