Weekly review of silver, NIKKEI, DAX | 07 August 2015

NIKKEI

Monthly chart buyers had run a great counter-attack (after a seemingly successful beginning of the downward swing), received a bullish closing. However, as long as the local O&U is not broken (which we discussed last week, and opened a deal) - we are based on expectations of a decline within formation of the downward swing.

Weekly chart as we see, the downward swing is not over yet, so we can expect that the price would move lower. Thus, if the price gets above the maximum (20958), bulls will be able to attack even stronger (by red arrow)

Daily chart Bulls stretched the local swing to no-loss zone of O&U (which is a typical method applied in recent time to get "extra passengers," out so, we have to "be patient" and wait for the profit on decline. And, of course, we are keeping in mind the option in which the transaction will receive Stopp Out and bring the index to new highs.

Scenarios:

1) drop from current levels towards 19100.

2) A breakthrough above 20850 and leave to the absolute highs.

Trading solutions

1) We are holding sales.

DAX30

Monthly chart the downward swing has been shaped, the upward swing does not have one more upper crossing. All that makes decline and growth to be equally possible outcomes.

Weekly chart preparation for the downward structure, but bulls closed Friday very well. For a further South you can not lose the top 11814.3 and it is necessary to break the bottom 10648.1

However, there is a local bullish O&U on the daily chart, so scenario marked by the red arrow can be possibly tested.

Daily chart bullish Over&Under from 10800.0

Scenarios: decline to 10800 and beginning of the new upward swing aimed to breakdown 11814.3

Trading solutions:

1) We are keeping purchases to 10800.0

2) From 10800 we shall buy with Stop orders at 10648.0 and targets set above 11814.3

Silver

Monthly chartSilver continues to become cheaper. However, the option when it reverses through the double bottom is relevant. Bulls will defend zone 14.36. but we must admit that the bearish pressure is enormous.

Weekly chart inside bar has been broken down, which also aggravates the fate of silver. However, even within the downward structure the price can possibly leap to 16.53.

Daily chart a perfect downward structure. However, there is no place to sell, because of the large stop-loss level

In case of growth above 15.00 it will be possible to move to 16.53.

In the case the price reaches the last Low (14.36), silver could again fall significantly.

Scenarios:

1) With a decrease under 14.36 we will lose at least another dollar.

2) With growth above 15.00, we are waiting for recovery to 16.53.

Trading solutions:

1) no entrance signals, so the challenge is to find such points. Based on the proposed scenario, we need to find the optimal point.