 Hello and welcome to the Monday market update with me at Dev Madden. Today's date is Monday, the 14th of May, and the time has just gone 1120 British summer time. Now, we'll have a quick look at the week ahead, first of all And then we'll scan through some of the major markets to find out Keep it on price movements and see what our prices we could expect in the next few days So like I said, we'll take a quick look at the week ahead article The week ahead article can be found on our news site on the under the news and analysis section So this week Tuesday is probably going to be our to be the most busy day of the week in terms of corporate More corporate and economic announcements. So tomorrow on Tuesday. We have Chinese retail sales, industrial production and fixed-acid investment We have full year figures from both the Vodafone and EasyJet and also a Tuesday. We have UK earnings and on the unemployment rate Later on in Tuesday morning, we have the Eurozone GDP and we also have the German ZEW economic sentiment On Thursday, we have full year figures upon Burberry fashion house, and we first quarter results from AstraZeneca So take a look now at some of the major markets Equities this morning are a bit on the software side There's been no real news positive or negative either way I observed of the macro Environment, but if you take a look here at the first 200 on a daily chart We can see that's been in a terrific upward trend for about for about seven or eight weeks now Pushing higher which we're seeing in terms of price action We're seeing no signs of the market of some of this upward trend coming to an end Should we need to push on higher from here? It could be looking at targeting 7,800 and keep in mind that is the old-time line that was achieved in January of this year It's a bit unusual how we actually haven't really had much of a really kind of a pullback So if you do see the market drift lower, that wouldn't be a major surprise We could lift we could drift back down towards the recent the recent low of 7,630 or potentially down to the figure itself 7,600 but and even if you drop below that we may pull back to south the the support area here potentially of just south of 7,500 But like I said, it's in a fairly solid upward trend Take a look at what's going on over in the US. Take a look at the S&P 500 Has been in a solid upward trend in the last in the last say a few weeks as well Not as as impressive of what we saw here in London But nonetheless this P 500 after many weeks of kind of dancing around and just hovering above The two-day moving average this red line here is finally actually manage to kind of move away from it It's only driving higher as you can see here the recent highs that were achieved have taken out to the April high so We're currently at levels We're currently the expected the cat S&P to open at levels not seen since late March Which is obviously quite bullish the markets pushing higher We're seeing a steady increase in positive momentum on the MACD indicator So the upward move is being confirmed in terms of momentum Sure, we continue to push on higher from here We could be looking at Tariq and you're in around the 2752 area and if you go north of that, we could be looking heading up towards 2800 the high from March Once again, we may see a bit of a drift to the downside So support may come into play in around the 2700 area or perhaps even at the 50 moving average 2679 notice how the 50 moving average this blue line here acted as a Resistance and support in recent weeks The Nasdaq 100 is probably the best former of the US indices We can see here now that the US at the at the The correction that the S&P that the Nasdaq London has gone through is probably our could be the largest of the major US Indices we're looking once again We're expecting the Nasdaq 100 to open at levels not seen since late March So it's actually mid March, so it's even a better shape than the S&P 500 solid upward trend here We've been cleared the 50 moving average and 180 moving average. We're pushing on higher from here We're currently at 6,972 the next big level to watch out for to the upside Well, of course be the psychology important of the 7000 level and if we go beyond that We can look towards 7,100 and then beyond that 7,178 Moves to the downside may find some support in around the 6,900 area or the or in fact possibly at 6,800 now So if you do see a pullback and may actually entice new buyers to enter the fold How we can see here about on the MACD indicator is that a positive momentum is quite strong So this being off this upward trend is being confirmed by an increase in positive momentum So it's likely that this upper truth upward trend is going to continue Take a look now at what's going on in the quality space Both Brent crude oil and WTI for a fantastic run recently The energy market not too long ago in recent sessions has hit a 42 month high levels not seen since late November 2016 So I apologize. I apologize level not seen since this late 2014 So the all market is in quite decent shape It's been in a solid upward trend in recent months. We look here at the price of Brent crude There's already speculation a lot of talk. We could go to $80 a barrel on Brent crude We've currently pulled back ever so slightly On the on the Brent crude but the support may commit to play in around the 766 sorry 76 dollars and 43 dollars a cents level are possibly down at what the 75 cents level It's only really if you go say south of around 72 75 could then you get worried that we're actually in for a bit of a deeper correction But given the political situation between the US and Iran and the solid upward trend that the markets been in for about 11 Months now, I suspect that the only positive move is going to continue Take a look now what's going on in a WTI very similar looking chart We hit 42 montanis on WTI not that long ago only a couple of sessions ago market has drifted a bit lower We didn't quite get as far as 72 but another talk that we could go to 75 dollars a barrel on WTI If you do manage to pull back support may come into play in around the 69 55 region or perhaps in around the 68 region or maybe even even indeed as low as 66 80 area in around here These are all areas we could find support should we drift lower? Taking a look now what's going on in the gold market. I'll talk about the soft uf dollar in a second We're going to go to the currency pairs But what we've seen here in the gold market has been Has been that the the dirty moving average this red line here which comes into play in 1306 has actually managed to provide a decent level of support It traded south of it a number of occasions, but I still managed to hang on to it So we hit 11 last Friday 11 not seen for for about 10 or 11 days Which isn't a whole lot but gives an indication that we're seeing we're seeing higher lows and we're now seeing higher high So this could be the beginning of the gold market kind of pushing up into the middle of the kind of range The area that has been in for the last number of weeks So we can see that the gold market that is best you try 2018 has been a lot of time in run They can at 13 to 5 1300 to look at a 1350 area or possibly 13 55 So if you do manage to push higher here I'll take out this blue line here the 50 day moving average which comes into play in around 13 27 Should push higher from here. We could look at actually taking off the late April high of 13 35 and if you go north of that we can be like any back up towards 13 55 It's only really if you see a size of a break south of the charity moving average and say south is a 1300 Because then we should be looking for actually further moves to the downside on the gold market Take a look now. What's going on in the Euro dollar? As I mentioned the at the south US dollar in that's weaker So has been a bit of a bit of a help for the gold market So taking a look at what's going on on the Euro dollar We can see here that after several weeks of effectively trading sideways and a sizable sell-off in the in the euro versus the US dollar We are seeing a better bit of a bit of a bargain hunters is stepping into the fold We can see here that the market is still below the security moving average which comes into play at 127 so why would we remain south of that? It's likely the outlook is going to remain negative And if it should be should the market turn over on us up again if you take off this this level here from last Wednesday at 1822 we then be looking at Looking at say fresh five month lows that'll be indication. We could be moving further south perhaps down towards 117 Or maybe even out towards 116 60 said 116 70 this area in around here But should we manage to push higher and take out the utility moving average which comes to the play at 127 we could be looking heading back up towards one spot 123 38 this area here and then if you go beyond that you could be looking at towards the 100 a moving average which coincides with the 50 moving average in at 122 40 Notice how as the markets pushing higher here, we can see a steady decrease in negative momentum So the upward move is be confirmed by the decline in negative momentum So it could actually see the market push on higher from here in the near term Taking a look now. What's going on with the pound versus the US dollar? similar of church and a size will sell off in the power versus the US dollar Which began in mid-April Consider continue down until the the second week of Of May but as you can see here a lot of consolidation in around the straight line here at the tour to moving average So that comes into play in around one thirty five forty six Sorry one thirty one thirty five forty six So we're about 50 pips north of the Trinity moving average for the time being at this area as you can see it's been a lot of consolidation And while we remain north of the turning moving average and more importantly north of the recent low Which comes into play at 134 60 I suspect we could see a bit of a continuation of a bounce back And also bargain under it hunting on the pound versus the US dollar And if you do manage to push on higher from here, we could be looking heading back up towards the 137 area and if you retake 137 we could be looking heading back towards the fifth removing average this blue line here It comes into play at 139 47 and if you get north of that Then 140 would then be the next area to potentially keep an eye out for but should we take out The recent low of 134 60 Okay, take us back down towards back down towards 133 take a quick look now of what's going on on the US dollar versus the Japanese yen and then look to wrap things up the dollar yen has been a fairly fairly tight range in recent sessions, so after quite a sell-off from Interact 2018 it could have began in December late 2017 all the two 2017 a quite a size of a sell-off of the dollar yen Market has been bouncing back and been pushing higher We are looking as if we're going to running out of a bit of steam in around this area here We appear to be trapped between the eternity moving average at 110 16 and also the 50 Sorry, the dirty moving average the mr. Redline here at 110 16 and the 100 in moving average at one away at 50 So chairs are wondering is this going to be a case of the market would run out of steam and the market would turn over on itself I continued the wider downward trend or actually are we actually look at look to Retake the dirty moving average and use as the best push on higher from here So let's keep an eye out for while we remain south of the dirty moving average It's more likely that were that were going that the negative the wider negative trend is going to continue And if you push on south here, and we drop below the one of the moving average We could be looking at it back down towards one away and if you go south of one away If you could be looking at heading back down towards one or seven forty the 50 day moving average this level here And a level south of there could bring us back down towards one or six and potentially have to one oh four spot 63 but if you do manage to take the overtake the One on the dirty moving average at 110 16 next there to keep an eye out for would be the mid-January high of 111 of 48 and if you go north of that if you're looking heading back up for us these highs here It's last seen in December 2017 at 113 57 There's going to be a There's going to be a video of this update It's going to be on our insight section which I'll post it here in the next hour or so This is going to be listed here on insights insights can be found under a market pulse second option down some of the updates that we do throughout the day in terms of reducing analysis or market add updates can post it to insights Also, keep an eye out for the chart forum and chart form can be found on also under a market pulse is the third option down This will hear chart form is where effective take a snapshot of a of a particular market I want a few words of what we think is going on in terms of price action And also mention a couple of key levels to keep an eye out for well That's all for me this week. Have a good trading week and good luck