Technical Analysis Weekly 04.07.2022

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.

-----------------------------------------------------

Wall Street (4 hours)

The price of “Wall Street” posted an engulfing bullish pattern on the daily time frame. This shows that the buyers took control of the market and might push it to the upside. On the lower time frame, the asset posted a double bottom which led to a break of the bearish trend line to the upside. A lower correction could be seen to the 30,800 mark before a new bullish impulsive wave toward 32,625 level, the lows from early June.

Source: SpreadEx 

UK 100 (4 hours)

UK 100 posted a deep correction to the 7,180 mark where the price left a double bottom formation after breaking the bullish flag pattern to the upside. The price is controlled by buyers, so we expect further movement to the upside to reach at least the 7,360 mark, which is range resistance from June.

Source: SpreadEx 

Germany 40 (4 hours)

The price of GER40 was in a clear downtrend before entering into a sideways movement with a floor of 13,000. Sellers managed to break this parallel channel to the downside, and now the price is being traded inside a bearish wedge formation. If the bears succeed to break this pattern to the downside, then a further downward movement could be seen toward the 12,500 mark.

Source: SpreadEx 

Gold (4 hours)

Gold has re-entered inside its prior sideways range after a fakeout to the downside near the strong support level (1,800). This shows that the bears are weak and the buyers could be about to reverse the price to the upside. If this scenario occurs, we could see the yellow metal reaching the area of confluence made by the higher end of the channel and the next key resistance level around the 1,875 mark.

Source: SpreadEx 

Silver (4 hours)

The price of “Silver” is moving to the downside where lower highs and lows have been posted. In addition, the asset is traded inside a bearish channel formation. The market reacted to a strong support level near the 1,920 mark. A higher correction toward the higher end of the channel could be seen before a new bearish impulsive wave that could push the price back to the 1,920 mark.

Brent Crude (4 hours)

Brent Crude Oil is currently traded inside a parallel channel formation which is made of a key strong support and resistance level with the following price values: 107 & 115. The market posted an engulfing bullish pattern near the lower end of the range which led to a reversal and a move higher. This move to the upside might continue all the way up toward the June high at 124.

Source: SpreadEx 

GBP/USD (4 hours)

After breaking the parallel channel to the downside, Cable found buyers near the 1.20 mark and reversed higher. The market showed good positive momentum which could lead to a break of the bearish trend line to the upside. If this scenario occurs along with a close above the pivot level (1.21), this could lead to a move higher toward the 1.24 mark.

Source: SpreadEx 

EUR/USD (4 hours)

The EUR/USD managed to break its sideways channel to the downside, however a strong reversal was seen near the support level along with a strong positive momentum. The price is about to re-enter the parallel channel from the downside. If this move happens, the price of “EUR/USD” could reach the 1.06 level, the top of the former price range.

Source: SpreadEx 

USD/JPY (4 hours)

The price of “USD/JPY” has entered into a sideways range after an aggressive move to the upside. The asset posted a double top formation near a strong resistance level which led to a reversal and move to the downside. The Dollar-Yen successfully broke the bullish trend line to the downside which indicates that the sellers are in control of the market. A break and close below the pivot level (134),  could see the “USD/JPY” reach  131, the June 16 low.

Source: SpreadEx 

SPX 500 (4 hours)

Sellers are in clear control of the market where lower lows and highs have been posted. We have seen a strong upwards correction in the form of a rising wedge pattern. A double top has been left just above 3900, which led to a reversal and a move lower. In addition, the price managed to break the wedge pattern to the downside which is a sign of strength from the sellers. Further movement to the downside could be seen toward the 3,645 mark.

Source: SpreadEx