Saturday, June 28, 2008

Huge Volume In Euro Currency ETF



The other day I posted a chart of the Swiss Franc so it's only fair to post one for the Euro currency as well.

Above is a daily chart of the ETF for the Euro currency. What I find particularly interesting about this chart is the huge volume that we saw on Friday. Whenever a stock or ETF has large spikes in volume it's usually the result of trading activity by mutual funds and other large institutions. In my opinion this is extremely bullish and just adds more confirmation to my forecast of a lower dollar and higher prices for foreign currencies and gold.

3 comments:

Eyal said...

Nice analysis. I agree it looks quite bullish. One thing worth noting I think is the small range on that high volume day which is un-characteristic of strong accumulation days. It's also coming at a previous resistance level set on May 21st, which was also on relatively high volume.

In any case, it'll be interesting to see where it goes from here. Either a good breakout up or a failure of that could lead to a large move I think.

Pam said...

Hi Kevin
I am a regular at your blog. It's really amazing. I am primarily involved with only stocks . Could you suggest any resources(books etc)where I can learn about futures. I do not plan to start trading them but I am curious to develop a basic undersatnding of wht they are, things like open interest,commercials etc. One more questions where can I get the charts of the futures contracts on the web for free. Or is it that they only available on paid sites.
Thanks
Pam

Kevin said...

Hi Pam,

A great book that I used years ago is Technical analysis of the futures markets by John Murphy.
I think Amazon might have that book and you can find the link on my blog but to be honest with you, you can probably find lots of free information on the internet so save your money.

You can get free charts from FutureSource.com

Thanks for reading...

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