During the webinar, made possible by bank Société Générale, technical analyst Geert-Jan Nikken of Trade Idee stated that the AEX, after its closing record above 800 points on Thursday, could remain in an upward movement according to his charts.
Watch the entire webinar here
“The trend is still intact,” he said. On the other hand, the much larger S&P 500 index has already risen sharply against the trend movement. “I’m starting to get scared of heights in the S&P500,” said the technical analyst.
Nikken also uses the Relative Strength Index (RSI) for all estimates. This index serves as an indicator or, according to Nikken, a ‘tension gauge’ to help substantiate the buying or selling moment of, for example, shares and other investments.
In addition, he uses the index’s trend movement as a support. “I believe that as long as the trend is going on, you shouldn’t change it that much,” he explained.
Gold and Euro
In an overview of asset classes, Nikken says it is “bland” or negative about a currency investment in euros versus the dollar. “I think we can go lower in the eurodollar,” he says. In the long run, the price may even go to $1.09-$1.10 at now $1.1741.
Gold went up for a long time. But there has been a significant cooling. “I have no reason to think we’re going to have a flaming move up,” Nikken says from his charts.
He says he is ‘not predominantly’ negative about gold as an investment. “As long as gold stays above $1700, you can give it the benefit of the doubt. But there will be a trigger need to come if gold is to start a significant rise again.”
And if that price drops below $1700 per troy ounce (31.1 grams), “there’s quite a bit of room to go down towards $1450.”
Oil warms up
When investing in crude oil, Nikken sees “an important level” near the $77 to $81 a barrel mark. “There have been peaks there in the past. The higher prices are now not confirmed by the relative strength index. I think this is going to be a tough barrier and I don’t think we’re going to get through it any time soon. But there is upward pressure,” said Nikken.
“I don’t think we will go down very fast. If we shoot up through the $81, it can go fast and we can go to $95.”
View the entire webinar here.
Technical analyst: ‘Still room for AEX rise’ | Financial
Source link Technical analyst: ‘Still room for AEX rise’ | Financial