Weekly Review. NIKKEI, Dow Jones, Silver | 06 November 2015

NIKKEI

Monthly: So, we wait for the second crossing upwards (in the framework of the upward swing) and will anticipate a continued trend (namely - further growth above the last vertex 20964)

Weekly: on the local level we have downtrend (intersection of two consecutive swings down are marked as the yellow areas), so growth and decline are equally probable. Upon that, there are no signal to sell, but buying from that is also not profitable (because of the large Stop order, which would be placed under the last bottom 16893).

Daily: drop is initiated from a very strong resistance 19200. Diagnosic support zone is represented by the last bottom (17658). If it is not touched, then there will be preconditions to save the rising structure (which now has just just one intersection of swings up).

Expectations:

1) Decline from current levels to 17950, and then start of rising above 19203, in the direction of 19900.

2) Decline from current levels, and breakdown of support 17658 that will break the ascending form. This scenario can be discussed only in our next review.

DJI30

Monthly: the index is closely approaching to a potential reversal zone down under the bearish pattern O&U (18115 Zone). This happens on intensive breakdown of the Insider bar, so this is not the most reliable pattern for trades. However, it is compensated by a small Stop (over the last top, 18380)

Weekly: Main question of the week is whether bulls will finalize the zone of monthly O&U by current swing or the index will go through pre-correction around 16940.

Daily: Friday's impressive bearish absorption almost leaves no chances on growth from current levels.

Expectations:

1) Decline from current levels to the 17050 area, where there will be the new swing up (within the day's frame), with the break to 18115. 2) Decline from current levels with a breakdown of the support area 16 882 and falling to 16,000.

Solutions:

1) Sales to 17050, 16882, 16000

2) When around 17050 we have buy signals, we shall take profit on sales and open trades up to 18115.

3) In the area of 18115 we can place Sell limit orders.

Silver

Monthly - the strategy of upward reversal has not changed - it will only be possible with breakthrough of the price above the last Top (18.19).

Weekly: the price is fulfilling our previous scenario (decline to the zone of bullish pattern O&U, 14.35)

Daily: and here we see the bearish local Over&Under with the entrance area 16.18

Expectations:

1) Drop to 14.35 and beginning of intensive growth. 2) Rising to 16.18, and then decline to 14.3

Solutions:

1) Sales from 16.18 to 14.35

2) Buy from 14.35