Technical Analysis Weekly

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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US TECH 100 (4 hours)

The US TECH has risen nearer to the upper channel of the predominant medium-term trend and put in a double top at 12250. Although pullbacks might lead to a rejection at the top trendline, bulls prefer to maintain price biased up and above the 12k handle; otherwise, they risk weakness to 11500. Holding the line could see the index advance to 12500, with a surprise breakout eyeing 12880.

Source: SpreadEx

RUSSELL 2000 (1 day)

The US Russell seems stuck in short-to-medium and also medium-term range bound markets. Breaking past the top at 1910 could open the door to the 2k handle (and higher). The double top formation and the false break at 1930 could offer a short-term pullback, with weakness below 1830 exposing bulls to 1730 and reducing the chances of revisiting the 2k ceiling.

Source: SpreadEx

GERMANY 40 (1 day)

The German 40 index trades in a narrowing range that resembles a triangle pattern. However, either a flag or pennant could print. 15k appears as short-term support, with its break sending prices to 14680 unless bulls recapture the 15270 peak. Above the former, the index remains biased up, with the next target at 15500.

Source: SpreadEx

LONDON GAS (4 hours)               

The price of London Gas reached a high of 1025 before reversing bearishly, leaving a flag pattern imprint and aiming for the lower channel below 900. Losing the bottom trendline could see a leg down at the 800 base unless  830 offers some respite. An upward attempt could see triple digits revisited.

Source: SpreadEx

SILVER (4 hours)

Silver continues to consolidate with a flag, pennant, triangle or rectangle pattern all at play. Of note is that prices are range bound, with a breakout imminent in either direction. The upper limit lies at 2480 and the lower at 2230, while anything between is expected to extend the sideways price action.

Source: SpreadEx

BRENT CRUDE (4 hours)

The sideways correction in brent resembles a short-term rectangle top pattern with a breakout in either direction possible. Given the wedge pattern printed and the uptrend off the 75.00 lows, breaching the upper band at 89.00 could open the door to 91.70. A swing low of importance can be seen at 83.50, with the 80 round support below.

Source: SpreadEx

GBP/USD (4 hours)

Cable maintained its sideways price action with 1.2450 remaining as the top, but 1.2263 becoming the new lower range support. An upward move could see 1.2600 and beyond reached if it completes a triangle pattern, with a slide opening the door to 1.2140 and lower towards the 1.20 handle.

Source: SpreadEx

USD/JPY (1 day)

USD/JPY has met resistance enough times to presume a range is forming, but it has an upward bias due to the higher lows that it resembles a pennant and a triangle. The upper bound lies above the 130.00 handle, and the lower above 129.00. Being in a larger-term downtrend, the breakout could offer a move down to 126.35 rather than 135.00, with 131.50 invalidating the bearish leg.

Source: SpreadEx

EUR/GBP (4 hours)

The EUR/GBP pair has been consolidating for a while now, but it does so while in an upward trend. The support at 0.8700 could be an opportunity for a leg to 0.8900 top unless the low weakens towards the 0.8500 handle, finding temporary support at 0.8640. 

Source: SpreadEx

KINGFISHER (1 day)

The share price of Kingfisher appears to have left a head-and-shoulders pattern on the chart that recently broke the sloping neckline near 250.00. If bulls maintain bias upward, the next target lies at the 300.00 handle; otherwise, the risk of losing the neckline and invalidating the pattern. If so, the right shoulder at 225.00 could be revisited.

Source: SpreadEx