had been flashing "overbought" lately following a strong six-week rally from sub-1.
There are certain momentum indicators
, which show oversold positions on the dollar.
As always the price is the lead indicator, and a close above the second resistance (US$8,374) would override the bearish momentum indicators
However, one may note that momentum indicators
are at overbought territory and volume is declining,' Ravelas said, explaining this could be 'an early indication that the market may be nearing a top.
remain bearish and the index is moving away below its moving averages.
The net change in score came from a decrease in the liquidity, valuation and earnings momentum indicators
, offset by an increase in the technical indicators.
Bearish momentum indicators
for gold have accelerated, and a sustained break below $1,232 could take gold near $1,180, technical analysts at ScotiaMocatta said.
Both the Stochastic Oscillator and RSI are each suggesting that the GBPUSD is oversold and looking at the historical correlation between these two momentum indicators
, the price seems to quickly rebound after approaching the oversold boundaries.
While technical momentum indicators
such as the relative strength index (RSI) show the FTSE 100 is in 'overbought' territory, some fund managers see scope for more gains as investors continue to plump for equities over bonds due to better returns.
With the trending and momentum indicators
pointing lower, a break below these would extend weakness to test strong support at 1,526.
Meanwhile, momentum indicators
show the strength in S&P 500 is starting to decline as well.
While the short-term technical trend and momentum indicators
remain positive, we think that ample OPEC spare production capacity is likely to cap the upside.