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.

NOTE: These charts use the ‘Pro Trading Tools’ available on the SpreadEx trading platform. To use them, log in to your SpreadEx Financials Account and click ‘Technical’ from the menu on any chart.

WEEK COMMENCING 11TH NOVEMBER 2024

Summary

*KEY

Trend direction is set by the slope of the VWAP

Trend phase is determined by the current price relative to the VWAP (20) level and Elliot waves

Support & Resistance are set by the StdDev #2 Lower and Upper respectively.

Momentum is determined by the RSI level (70 as overbought and under 30 as oversold).

Analysis

Germany 40

Germany 40 remains bullish but is still in a correction phase, trading at 19,449, just above the VWAP (20) level of 19,343 after trading below it most of last week. Support sits at 19,020, with resistance at 19,666. The RSI is at 54, indicating moderate momentum as the index navigates its corrective move within a broader uptrend.

UK 100

The UK 100 index holds a neutral trend with increased potential for a breakdown. There is notable underperformance vs other global indices. The price at 8,128 is slightly below the VWAP (20) of 8,212. Support is positioned at 8,049, and resistance at 8,374. An RSI of 40 reflects sluggish conditions, as the index tests key levels within its range.

Wall Street

Wall Street is in a bullish, impulsive phase, reaching 44,127- a record high and well above the VWAP (20) of 42,588. Support is at 40,971, while resistance is nearby at 44,120. The RSI at 70 shows strong momentum, nearing overbought conditions, signalling caution for further gains in the short term.

Brent Crude

Brent Crude remains neutral in consolidation broadly between the 7000 and 8000 levels, trading at 7309, below the VWAP (20) of 7372. Support is at 7111, with resistance at 7633. The RSI of 45 suggests soft but stable momentum, as the commodity remains within its range-bound state.

Gold

Gold continues to exhibit bullish behaviour overall but has entered a sharp correction - its largest in a number of weeks. It’s priced at 2,666, below the VWAP (20) of 2,726 and testing the lower 2 period standard deviation of the VWAP (Support) at 2,660, with resistance at 2,790. An RSI of 43 reflects new bearish sentiment, with a drop below 50 not seen in months.

EUR/USD

EUR/USD remains in a bearish, impulsive trend coming off the back of a massive 300 pip 1-day decline last week and currently trading at 1.0679, below the VWAP (20) of 1.0813. Support is nearby at 1.0685, with resistance up at 1.0941. The RSI at 34 indicates downward pressure, suggesting limited bullish attempts to reverse the trend.

GBP/USD

GBP/USD is neutral in a consolidation phase with a bearish bias at 1.2897, just under the VWAP (20) of 1.2961. Support sits at 1.2868, and resistance at 1.3054. With an RSI of 42, the pair shows mild bearish momentum within its consolidation phase.

USD/JPY

USD/JPY holds a bullish, impulsive phase, trading at 153.62, above the VWAP (20) of 152.31. Support is set at 150.09, while resistance lies at 154.52. The RSI at 60 reflects continued bullish momentum within its uptrend, and still some way off overbought levels.