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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SPX 500  (1 day)

The SPX 500 took a breather above the 4k handle but remained in an ascending trajectory following the flag completion at 3800. Bulls may be aiming at the peak of 4200, where a double top might form temporarily. But If the support at 4040 fails to hold up against bearish sentiment, we could see a deeper slide into 3950.

Source: SpreadEx

US TECH 100 (4 hours)

Recent price action has seen the US Tech 100 flip the channel resistance near 12500, with a subsequent rally pushing prices towards 13700. An immediate hurdle for buyers formed near 13230, and if bulls can recover this level, then the acceleration may regain traction above 13500. Dropping under 12840 could hint at downside continuation towards 12500 again.

Source: SpreadEx

UK 100 (4 hours)

The UK's 100 index is trending upwards, reaching a  peak of 7765 and concluding a 5-wave impulse. If prices stall beneath the top, the odds of a selloff back to 7590 will elevate, depending on the degree of support found at 7640. But a potential correction might enact further bullish bets. Otherwise, breaking higher might see continued momentum above 7850 and towards 8045.

Source: SpreadEx

BRENT CRUDE (1 day)

Brent reversed upwards at $70/bbl, offering the possibility of reaching $89/bbl to complete the right shoulder of a potential inverse head-and-shoulders formation. A break above $86.40/bbl could achieve this milestone if the $83.50/bbl support holds. A deeper pullback to the $80 barrier is rather unlikely, with supporting bearish activity potentially resulting in a move to $82.50/bbl.

Source: SpreadEx

GOLD (1 day)

Gold reached a high of $2050 per ounce after breaking past its triangular pattern, falling short of the measured-move peak of $2070. The local resistance could potentially lead to prices falling back to the 2k threshold, but sliding as low as the $1965 support per ounce will likely reverse the short-term trend. Conversely, moving past the peak will kick the door to $2090 per ounce wide open.

Source: SpreadEx

NATURAL GAS (1 week)                 

Natural gas recently crashed to $2 per cubic foot after ending a bearish flat pattern, signalling a potential depreciation to the 2020 low of $1.50/cf. To maintain bearish momentum, sellers must push prices under the hurdle; otherwise, prices will likely pull back towards $2.30/cf, and possibly further if that gives way.

Source: SpreadEx

USD/JPY (4 hours)

USD/JPY buyers failed to overthrow the resistance near the 132.00 handle, ending the attempt in a bearish flag formation. If 130.63 is lost, it could pave the way to the local low of 129.64, but unlikely to reach 128.56. Inversely, if bulls can successfully bring the pair past the peak, then attention will shift to 133.75 and, in the interim, 132.90.

Source: SpreadEx

EUR/GBP (1 day)

EUR/GBP may have formed a triangle at 0.8729, with the breaching of the two preceding peaks of 0.8865 and 0.8925 potentially paving the way for long-term upside. If the pair weakens under the local swing, prices might recede to 0.8647 in the medium term. In such case, a flag might form instead, with 0.8690 a potential target next.

Source: SpreadEx

GBP/CAD (1 day)

GBP/CHF appears to be trending higher but has recently formed a double top, suggesting another bullish attempt may fail. The critical support level at 1.6582 could be broken if prices meet stiff resistance, potentially opening up the possibility of reaching 1.6230 if 1.6360 succumbs to potential pressure. Alternatively, an extension of the impulsive phase may send the pair to the ceiling of 1.70 and perhaps higher.

Source: SpreadEx

INFOSYS LIMITED (1 day)

Infosys' share price has been moving downwards but with limited strength, resulting in a weak attempt to reach the low of 16.40 and a double-top formation. Bullish traders could drive prices towards 19.60 through 18.40 if the local resistance of 17.50 gives way. If bears manage to push prices back towards the base support, there is potential for a breakdown towards the 15 handle.

Source: SpreadEx