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 index breached the upper channel trendline to recapture the 12880 resistance and is now correcting towards 12250. If the trendline offers a retest, bulls could revisit the peak and break past the 13k handle for a chance at 13500. Breaking through the trendline could see the 12k  lost and the door to 11700 wide open.

Source: SpreadEx

FTSE (1 week)

UK’s blue-chip index reached a record high of 7913, forming a double-top failure on the weekly chart. While in price discovery above the peak, the FTSE completed a flag, providing a measured-move projection near 8470 in the medium term and the 8k handle in the short term. Inversely, losing 7706 could clear the path to 7250 if 7500 succumbs.

Source: SpreadEx

WALL STREET (4 hours)

Wall Street trades in a narrow range resembling an ascending triangle pattern with a flag and a pennant still probable. 34350 appears as the peak, with its break sending the index to the 35k handle next. A pullback must occur before the breakout to validate the pattern towards the ascending trendline and near 33300. The invalidation is at the 33k handle, and if lost, 32500 is the next support.

Source: SpreadEx

NATURAL GAS (1 week)               

The price of Natural Gas appears in a dead-cat-bounce pattern with an extended breakout leg exceeding the length of the initial downward move significantly at $3.5. The next major support lies at $2, with a reversal or some respite at least likely. Below $3.5, it is unlikely the commodity exits the bear market.

Source: SpreadEx

GOLD (4 hours)

Gold has fallen quickly to resemble a dead-cat-bounce pattern, but the v-shaped recovery appears to be at play only recently. Below 1933 the chances of further deceleration remain high, with 1830 in focus. If bulls manage to recover the lost ground, we could see a revisit of the peak at 1975.

Source: SpreadEx

BRENT CRUDE (4 hours)

Bears recaptured the $80 handle as part of a possible correction typical of leading diagonals. With the pullback eying $78 in the short term, an opportunity for an upward leg towards $84 could be provided soon. But failing to defend the base could invalidate the pattern, bringing a double-bottom down at $75 on the table.

Source: SpreadEx

GBP/USD (4 hours)

The pound invalidated the short-term triangle pattern but could bring a larger timeframe ascending variation into the spotlight. 1.1840 is the invalidation low, with some respite expected around 1.20. The upward leg would be expected to offer a triple top at 1.2440, with the 1.2140 short-term resistance required to provide easy access to higher territories.

Source: SpreadEx

EUR/USD (4 hours)

EUR/USD  has found short-term support at 1.0770 to resemble a sideways bottom, with chances at 1.10 increased in case of firmness. In the interim, 1.0873 is median resistance, with a break down below paving the way to 1.05. Above there, bears must take control of the 1.0686 support first.

Source: SpreadEx

USD/CAD (4 hours)

USD/CAD completed a falling wedge before reversing, but it needs to break past the upper descending trendline for increased chances of reaching the 1.3520 resistance next. If the trendline offers rejection, a move towards 1.3300 could be expected, with a further decline likely to invalidate the pattern than showing a pullback. 

Source: SpreadEx

GBP/ZAR (4 hours)

The prices of GBP/ZAR have been trading within a pennant pattern, either complete or likely to complete fairly soon. A short-term decline to the lower trendline must be followed by a reversal upwards for the pennant pattern to complete. Otherwise, the pair could succumb towards 20.00, with a stop by 20.40. Control of the 21.00 round resistance is critical to the bulls’ work, along with the ceiling at 21.50.

Source: SpreadEx