Asian markets closed indefinably after the Index of business activity in the Manufacturing Sector release in China. This is a leading indicator of economic growth, as it shows the activity of purchasing managers in the Manufacturing Sector. Data was above the expectations (50.8 against expected 49.7). We should admit that the level above 50 speaks of growth.

Europe opened with a minus this weak because news from Iraq overshadowed the good data from China. And there also were some bad news from France. Mario Draghi hinted that the key interest rate would stay record low in following 2.5 years. The program is to stimulate banking crediting and will last for 4 years. It may cause the preasure on Euro.

Despite the fact that U.S. indexes were traded calmly last Friday, nevertheless there were individual shares that provided greate trading opportunities. eBay is one of them. Once sellers retained resistance of $52.50 — break down of which happened as a consequence of the bad report’s release. Shares of the online auction fell to the great support which was valid for more than a year since March 2013, as well as the psychological point of $50.00. Break through this level gave us 3 days’ continuation to $48, then the price went into consolidation/flag and tested the level of $50, which now acts as resistance.

The first entry was when the price broken the previous high of $49.50, then the trend line (flag) of $49.2-.30 penetration. I expect the fall to the bottom of $48.20 on June 10, but before that the price should keep the target of $49.50-.75 and $48.95.

ebaybear flag

Amazon also behaved well at the auction on Friday. On a daily chart since the beginning of 2014 it is in the lowering range near the trendline, below the 200 EMA.

On a short-term 15minutes chart an h-figure has forned. The first entry point was the prewious low of $326 penetration, and then the middle-term support of $324 breakthrough. If the price stays below $324, $326, $328.50 then I’ll look forward to continuation of the downward movement. The breakthrough of the low of $320.41 will attract more sellers. Immediate target may be the potential support of about $315.

USD/JPY is trying to break away of its semi-annual consolidation. Now, after the jump-off the resistance of 102.774 it’s traded below the key moving avarages. The resistance breakthrough may attract traders’ attantion. Middle-term target is 200 EMA around 101.050 and the the low of 100.809.

Gold has came into the consolidation after the large growth and builds a symmetric triangle - it stands for a temporary indecision. Traders need some more time to absorb this great movement from $1241 to $1322. I’ll use support rates that were mentioned on Friday’s analysis topic. This consolidation resolution may lead to a great movement. My favorable scenario is an uptrend movement continuation.
gold wedge