A great rally yesterday of around 200 points and we’ve broken above the short-term bearish trend channel discussed in yesterday’s article. So the sellers are under pressure right now and are hoping to hold on to the 300-335 zone. Even sellers will look at yesterday’s price action and concede that we are showing a lot of bullish strength. Once the 335-350 zone goes, then it’s very difficult to remain bearish.
This would be classed as a reversal if we break through the resistance with strength (starting to do that) and then hold a pullback. The pullback targets are likely to be in the 12100 – 12200 zone and then if the rally continues, we could be looking at targets near to 12450-12525.
However, today is ECB day, the September policy meeting. The market is expecting no change in the benchmark interest rate and no change in the asset purchase program. The inflation rate has been driven by energy so there is no inflation pressure. So it’s likely they will play it safe today. But the price action will probably slow down in the build up. So perhaps we won’t see the breakout today, but we can plan for it.
In other news, I didn’t realise that Fischer (Fed Reserve Vice-Chairman) resigned yesterday. Did that have something to do with the extension of the US debt ceiling? Difficult to know, but it was a surprise to me. In other news, let’s see if NK fire another ballistic missile before the 9th (their founding day). As for the German elections 24th Sept, we’ve lacked much of a campaign, but expectations haven’t really changed. I believe nearly all the governments since the 2nd world war have been coalition (perhaps 1 or 2 have not), so that’s likely to remain the same and Merkel’s lot are likely to have the largest party, but not a majority.
Balance: $526 (Original investment $125, all time high $546)
No changes made to the portfolio yesterday. But I did spot that we reached a new all time high. I am happy to sit on these for a while now.
Targets: IOTA to $2 and Ripple to $0.90