Our market commentary is a tool we use to provide investors with a brief insight into the more technical side of the trading world. It consists of 3-sections
A candlestick graph is a chart where each individual candle represents one trading day. This allows you to look at several weeks of trading to see if there are any general patterns in the market. There is also a red line that accompanies the graphs. This line is called a moving average simple line. It is designed to help you spot these patterns, instead of looking at each candle to get the pattern. By viewing this line you can see the general line trend over a period of say 5 days to see which direction the market is moving.
| 2) Resistance and Support Levels: |
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A resistance level is a level at which if the market reaches, human nature will be for sellers to wish to sell but buyers do not want to buy, thus typically the price of the product will go down. The resistance level is effectively a predicted high in the market. It is not always correct and sometimes a product can push through these levels and exceed expectations. These levels are just a guide in attempts to predict what the higher range of the product was for a particular trading day. A support level is the exact opposite to a resistance level. It is the level that the market reaches when buyers want to buy but the sellers don't wish to sell and so the market should in theory increase in price.
The written commentary portion of the Market Commentary is more technical in nature. It consists of the products closing price, a prediction of the next days opening prices, the range of the closing, and a small segment regarding whether the product is hitting upside or downside targets. This information is not to be used as a guideline for your trading, but merely a resource for you to make your own qualified investment decisions.
A glossary of terms can be found by clicking here to aid you in understanding some of the terminology used in the written commentary.
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