NIKKEI, DAX30, silver: weekly review | 16 October 2015

NIKKEI

Month: a very promising place to start a new upward swing - pivot area from the previous High 16403-16857. October bar could eventually close the inside bar that would confirm Northern expectations.

Week: a successful start-up of work on the expressed pinbar we recovered last week. There is still a lot of room for the bullish movement.

Day: two inside bars at the end of the upward swing has not been broken in any of the sides, which saves a chance for Bears. Reference levels for the two scenarios. Bulls will be activated by a break above 18651, bears - by the leave under 18,000. Respective objectives can be in the areas of 19860 or 17155.

Expectations:

1) With the growth above 18658 - continuation towards 19860. 2)   With decline under 18,000 - a further decrease to 17155.

solutions:

1) We act based on one of the scenarios (following the breakdown if mentioned support levels and resistance)

DAX30

Month: is still too early to tell, but if the month will be closed by the inside bar - it would be a good signal to enter up along the main trend.

Week: a fairly obvious working on the pinbar from good support, so the upside potential is far from being exhausted. The structure of the chart is clearly downward, but correction may reach further to the North for a long time, up to 11171.9

Day: have good work on the double bottom, as well as an attempt to break through the last insider bar on the end of the upward swing. Equal probability of breakdown of the IB both downwards and upwards. That would determine the direction of the local movement this week.

Expectations:

1) In case of withdrawal under 9900.0 - decline to 9302.2. In the case of consolidation above 10065.0 - further growth to 10528.6

solutions:

1) Act based on one of the scenarios (perhaprs, with the orders aimed to breakthrough).

Silver

Month: a possible upward swing, and we see that the momentum is frankly bullish. This is a very weighty application for the upward reversal. But to fix this reversal, we need a break above the last top (18.46), which would form a pattern Over Under, in which you can place medium-term Buy orders on the penultimate day (14.34). If bulls break resistance 18.46, then silver may start falling again (see the red arrow).

Week: an already formed bullish O&U. You can put limit orders at 14.36 with the targets 17.80 and possibly 18.50

Day: a strong local resistance 16.10. It is not clear - whether bulls will push after Opening, or a roll back into the zone of the weekly O&U will take place. The scenarios are equally probable

Expectations:

solutions:

1) Buy Limit orders on 14.36 (+ spread). Put stops under general Low. Middle term goals - 18.50 and 21.60

2) Within a week, you can consider selling from 16.10 to 14.36