Weekly Technical Analysis

Start your week by identifying the key price levels and trends.

The SpreadEx Research team has analysed the most popular markets, including stocks, indices, commodities & forex.

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WALL STREET (4 hours)

Wall Street appears in consolidation, likely a flag pattern, with upside potential above 35680  past 36k based on the measured move. If bulls lose 35k, 34600 is expected support lower down.

Source: SpreadEx

US TECH (4 hours)

The Tech index has been declining, revealing a potential wedge down at 14650, along with a possible double bottom formation, increasing the chances of an H&S pattern. Falling under 15k will open the door to 14660, whereas getting past 15280 will increase the prospects of a 15550 breakout.

Source: SpreadEx

GERMANY (4 hours)

A sideways consolidation may be underway in Germany 40’s index, clearing the way to 15500 but keeping the door to 16500 also open. Short-term price action suggests a flag-like consolidation, with the next support at 15620 and resistance above 16070 at 16250.

Source: SpreadEx

SILVER (4 hours)

The price of silver has fallen significantly to approach the previous bottom at $22.35/oz, with the following supports expected at $21.70/oz and the round $20/oz level. With a triangle now unlikely, a bounce could see prices accelerate towards $24.20/oz if bulls can reclaim $23.50/oz and form a range.

Source: SpreadEx

LONDON GAS (1 day)

While prices of London gas have increased substantially to keep speculation for a leg to triple digits high, the risk of a pullback towards the $800/cf low prior to hitting $1000/cf remains elevated amidst a potential H&S pattern. The uprise could extend as high as $1020 for a double top formation, with anything higher likely to invalidate the H&S. Short-term levels can be seen at $850/cf and $940/cf.

Source: SpreadEx

COCOA (4 hours)                 

US Cocoa futures reversed after hitting a high of $3620/mt, increasing the chances of an H&S pattern while trading below $3420/mt and above $3250/mt. Failing either level will likely invalidate the formation, raising the probability for a leg towards $3700/mt or the support of $3170/mt.

Source: SpreadEx

GBP/USD (4 hours)

Cable also appears to be forming a potential H&S pattern, pending a double bottom formation at $1.26 before potentially rising to $1.2850. Losing either of the levels will likely invalidate the pattern, increasing the chances of revisiting $1.2545 or $1.29. Short-term price action reveals a range.

Source: SpreadEx

EUR/CHF (4 hours)

A double top formation at 0.9650 is seen as the potential end of a bearish flag, opening up 0.9520 and the 0.95 handle. Spoiling the formation with a spike past the regional top could elongate the flag towards 0.9680 but is unlikely to invalidate it.

Source: SpreadEx

USD/CAD (4 hours)

USD/CAD’s retest of $1.3385 has seen prices bounce towards the peak at $1.35, but easing momentum increases the chances of a triangle or sideways consolidation. If bears push prices lower, $1.3250 could be reached beneath $1.33. Otherwise, moving above the top could see prices accelerate towards $1.36.

Source: SpreadEx

UNITEDHEALTH (1 day)

The stock price of United Health is consolidating symmetrically, pending a triangle breakout towards $530 unless bullish momentum wanes. Falling under the $500 handle could weaken prices further, potentially reaching $480 but unlikely $455. Conversely, prolonged bullishness could see prices as high as $550.

Source: SpreadEx