Technical Analysis Weekly 07.11.2022

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.

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SPX 500 (4 hours)

SPX 500 slid to 3700 after printing a rising wedge pattern. Ending a correction while it remains above the 3500 swing low could lead to the 3900 breakout and surge to the 4k handle. Above there, 4200 is significant resistance. Otherwise, the 3500 low could pave the way towards 3k.

Source: SpreadEx 

UK 100 (4 hours)

UK 100 reached a high of 7380, above the rising wedge target identified last week. 7100 is the primary support bulls need holding if the index turns down, with the 7200 a short-term floor. If the top breaks, 7500 and 7650 could be revisited after a possible consolidation.

China 50 (2 hours)

China  50 appears to be on an upside move following the completion of an inverse head-and-shoulders pattern. The rejection at the 12k handle could lead the price to 12750 next if 12250 gives in, and perhaps the 13k handle. Otherwise, the right-shoulder low at 11570 could be the last stronghold above 11150 low, which is the head.

Source: SpreadEx 

Gold (4 hours)

Gold has tested the 1625 low three times now, forming decent support. If bulls recapture the 1700 handle, 1740 is the next resistance, with 1780 as a last resort to the top side. If prices fail to surpass the ceiling and fall towards 1650, the chances of breaking the triple bottom at 1625 will increase.

Source: SpreadEx 

Copper (4 hours)

Copper broke outside the upper side of a rising pennant to 3.70, with pullbacks required to stay above the breakout point at 3.50. A higher reach could put 3.80 back on the radar, but a more profound correction might open the door to the low of 3.25. 3.42 and 3.30 are interim supports. 

Brent Crude (4 hours)

Brent reached the 98.00 high identified last week, with chances of getting past 100.00 rising. 105.00 is the first significant level in reach if triple digits are seen, but a double top at 98.00 could offer a pullback towards 92.50-95.00. If lost, 88.00 is the last support before sliding all the way back to 82.50.

Source: SpreadEx 

AUD/USD (4 hours)

AUD/USD appears to be moving up in a broadening wedge pattern, with potential at 0.67 and above increasing. Bulls must retake the 0.6550 top and hold the 0.65 support once -and if- the latter breaks. Otherwise, a slide towards 0.63 could clear the path to 0.62 next.

Source: SpreadEx 

GBPUSD (4 hours)

GBP/USD seems to be between a falling flag and an incomplete rising wedge patterns, with the former more likely. 1.15 remains a major resistance below 1.1750 – the extension of the upper trendline -with the lower trendline leading the way towards 1.0925 if 1.10 succumbs to pressure.

Source: SpreadEx 

USD/JPY (4 hours)

USD/JPY has consolidated in a tightening range, forming a potential triangle pattern. If the top trendline breaks, 150.00 is near-term resistance below the top of 152.00, where the break of the lower trendline could lead to 145.00 before the next move. In case it weakens, 142.00 is the next major support.

Source: SpreadEx 

Octopus Renewables (4 hours)

Octopus Renewables soared to 110.00 before turning lower but is likely to experience a pullback only. If the 100.00 handle holds, prices could spike to the next major resistance of 112.50 and 116.50. However, losing triple digits will expose the 90.00 record low, with interim levels at 97.50 and 95.00, with the latter having chances of being a ‘shoulder’ if the V-shaped recovery fails.

Source: SpreadEx