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 (1 day)

Wall Street confirmed the upper pennant trendline turned into support as it rose towards the peak of 34575 after a bounce at 33600, opening up 35k  and the swing high of 35500. Failing to get through the regional top might see a correction towards 34k.

Source: SpreadEx

GERMANY 40 (4 hours)

The German index of the top 40 stocks has formed a double-bottom near 15750, opening the door to fresh record highs above 16450 and towards the measured-move high at 17150. Losing the 16k handle might offer a chance at the lower end of the sideways market, with a break below exposing 15300.

Source: SpreadEx

HONG KONG (1 day)

While still in correction, the HK50 index might have put a low in at 18k as part of an inverse H&S formation. Moving past 20k might open the door towards the high of 22500 and beyond, whereas a leg under the round support might see further declines towards 15k, invalidating the pattern.

Source: SpreadEx

GOLD (4 hours)

Despite falling shy under 1900, gold still printed in a wedge pattern that now appears complete unless bulls lose 1890/oz. If so, it might provoke additional short bets towards 1850/oz. A reversal, even short term, might see gold revisit 1980/oz should 1930/oz offers no resistance on the way up.

Source: SpreadEx

BRENT CRUDE (4 hours)                 

Brent might form a descending triangle if prices remain under 77.20/bbl, with chances of rejection by the descending trendline still high. The completion of the pattern does not require further upside, though. Sliding under 74/bbl will expose the below of 72/bbl, and its own demise the 70/bbl handle in return. A break past the local top might invalidate the pattern but open up 78.60/bbl either way.

Source: SpreadEx

NATURAL GAS (4 hours)

The price action of natural gas resembles a broadening wedge pattern, which may see the commodity extend to a high of 3.30/cf to complete it unless it has already been completed as prices traded above the second peak of 2.80/cf. Retracing towards 2/cf will increase the probability of a complete pattern, whereas a short-term correction towards 2.40/cf will not see much-increased chances.

Source: SpreadEx

GBP/USD (4 hours)

Cable invalidated the wedge pattern resembled last week and appears to be in a flag pattern, pending downward consolidation unless bulls retake 1.2760 for a potential attempt at the peak of 1.2850. Declining below 1.2590 might see increased momentum towards 1.25.

Source: SpreadEx

EUR/GBP (4 hours)

EUR/GBP remains biased up so long the 0.8566 support holds firm in the short-term, with a drop under clearing the path towards 0.8515 and the round support. Remaining within the flag pattern might see the pair rise towards 0.8730, with interim resistance at 0.8670.

Source: SpreadEx

USD/CAD (1 hour)

Loonie might be in an inverse H&S pattern vs the dollar, pending the completion of the right shoulder, unless it ends up being in a simple flag correction starting at 1.3286. Further upside towards 1.3382, with a temporary resistance at 1.3328, will likely invalidate the H&S pattern. Conversely, if prices fall towards 1.32, the pattern might get validated so long bulls defend the line; otherwise, we might see a deeper correction take us down to 1.3115.

Source: SpreadEx

GREENCORE GROUP (4 hours)

The stock price of Greencore Group might have ended a wedge pattern down at 70.50p, raising speculation that a bottom might be in and prices see further upside towards 83.50p once 75.50p and 80p give way. If the descent continues under the trough, the pattern will most probably be invalid, with the gap at 66p becoming the next major level of support.

Source: SpreadEx