Technical Analysis Weekly

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 (4 hours)

US TECH slid below 12250 last week, with further drops opening the door to 11750. The index remains within the boundaries of a flag pattern and might see some respite towards 12500 and perhaps 12685 before more clarity is provided, but breaking outside the lower trendline would imply a bearish trend acceleration.

Source: SpreadEx

UK 100 (4 hours)

UK’s FTSE formed a wedge pattern by the record high of 7950 and pulled back to 7850 in what appears to be a correction. Falling deeper will expose 7770, with the short-term trend prevailing to 7620 if bulls fail to garner enough demand. On the other hand, we could see a bounce towards the 8k handle, implying a larger wedge pattern might be in the making. 

Source: SpreadEx

EUROSTOCKS 50 (4 hours)

Eurostocks 50 has formed a wedge pattern by the 4275, suggesting a pullback, if not a reversal, is at play. If the index reclaims the top, we might see the pattern completing a more extensive leg towards 4300. Further drawbacks could bring the 4100 support back into the spotlight.

Source: SpreadEx

LONDON GAS (4 hours)               

London gas received rejection at the bottom of its descending channel near 783 and bounced higher. If the bullish trend continues towards the 900 handle, we might see the upper trendline revisited. But losing the 800 handle will not only open the door to the previous lows but increase the chances of further declines to 750 and below.

Source: SpreadEx

GOLD (4 hours)

Gold formed a false-break at $1975 before reversing into its flag pattern, with all eyes now on $1840. If bulls fail to hold the line at $1863, the support might be reached this week. Otherwise, some respite to the $1900 might be seen instead. Only breaking past that swing might offer a decent chance back to $1932.

Source: SpreadEx

Brent Crude (4 hours)

Brent oil completed a leading wedge pattern and corrected back to $80, where it saw increased demand. The peak at $89 remains a short-term resistance, so long bulls defend the $83 support. Rising above the peak might offer an extended leg to $91.50 unless a double-top formation offers rejection.

Source: SpreadEx

GBP/USD (4 hours)

Cable remains in a range between 1.2450 and 1.1841 but is biased down as prices trade below the pivot at 1.2179. If the bulls lose the 1.20 stronghold, it could initially open the door to the range bottom, then lower. But if bullish bets get prices past the 1.22 ceiling instead,  the pair might revisit 1.23.

Source: SpreadEx

EUR/JPY (4 hours)

EUR/JPY has completed an ending wedge pattern and reversed, but price action remains contained below the 143.00 ceiling, albeit above 140.00. For the reversal to validate itself, bulls must recapture at least the top; otherwise risk losing the base and sliding towards 138.00.

Source: SpreadEx

GBP/CAD (4 hours)

GBP appears in a descending channel against the Canadian counterpart, with a descent below the 1.60 base clearing the path towards 1.58. If we experience some respite on the back of the triple-bottom at play, prices might rise towards the peak of 1.6324, with a pit-stop at 1.62.

Source: SpreadEx

USD/MXN (4 hours)

USD/MXN has formed a wedge pattern down at 18.50, but the bounce seen since has been nearly fully reversed. Losing the floor will open the door to the 18.00 handle, but if we see another momentum shift, the bulls must recapture 19.05 to support the current reversal at play.

Source: SpreadEx