US Stocks Could Be Nearing A Big Bounce
FNArena has added another video to its Investors Education section on the website. This week, ATW's Jerry Simmons looks at US stock future indices and he sees signs of bullishness emerging. Right now, the bulk of stock future indices have pushed back to the 2011 highs, which puts them in a strategic support zone. If we were to see a breakout beyond current levels, then Simmons thinks we could be looking at a "huge" extended move to the upside, or rather, a "the resumption of a bull market".
Trends for shares in Apple are looking very bullish, says Simmons, noting that if the shares pass US$582 it could be confirming an inverse head and shoulders move that would see a breakout to possibly above 630. As Apple has been a trend leader over the past three years, Simmons notes any upside push in Apple shares could indicate a breakout in stock futures indices as well. On the other hand, taking out low at around US$547 could see a drop below current support.
Looking at Light Crude futures prices, Simmons notes the odds right now are favoring at least one more move down. Potential for a more positive scenario remains: if current resistance is passed, it could well establish a double bottom, which could see oil prices bounce much higher.
Gold and silver have both met recent support levels and Simmons thinks that in the case of gold, a move past US$1600/oz could signal a significant reversal. With silver, he sees the chance of a 1-2-1-2 bounce occurring if prices push past last week's highs.
Simmons also thinks the USD/EUR resistance at 1.27 could be breached, which could see the euro turn bullish. On the other hand, a break below 1.26 could mean another leg to the downside. June 17 sees the Greek elections, which he notes could have a significant negative impact, although Simmons believes the worst is already expected and discounted by the market.
On Simmons's charts, natural gas is equally showing some signs of possible major reversal and extended push to the upside. While it will take months and years to play out, he notes a continued breakout to the upside could see one of the biggest rallies ever. Early signs are positive.
To view the ATW Strategic Prep Video click HERE or visit the FNArena Investors Education section of the website.
Here's the direct link: http://www.fnarena.com/index2.cfm?type=dsp_front_videos&vid=86
All views expressed are Jerry Simmons's, not FNArena's (see our disclaimer).
Jerry Simmons has over 25 years of full-time trading experience. He is the senior partner and head mentor for the "Masters" Programme within the education system at New York based Advanced Trading Workshop (ATW).
FNArena is pleased to have Jerry Simmons as a highly valued contributor to its service which aims at both educating investors and assisting them with their own market analyses.
The above mentioned videos can be accessed via the FNArena Investor Education section at http://www.fnarena.com/index4.cfm?type=dsp_front_videos)
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