Weekly Technical Analysis

week commencing 13th November 2023

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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WALL STREET (4 hours)

The upside leg past 34K has weighed on Wall Street prices, with the upper descending channel trendline increasing speculation for pullbacks towards 32810 in light of a potential inverse head-and-shoulders. Losing 33850 will slightly raise the chances of a drop towards 33450, but if the support holds firm, the next level up is at 35K.

Source: SpreadEx

UK 100 (1 day)

Footsie could fall further to complete a potential wedge pattern under 7250 but is unlikely to extend to 7K as it would imply breaking the lower wedge trendline. If bulls retake 7490 before a fresh swing low, the pattern will get invalid at 7580 and, in turn, open up 7700.

Source: SpreadEx

EUROSTOCKS 50 (1 day)

The double-top formation currently seen on Eurostocks 50 resembles a cap-and-handle pattern, pending short-term pullbacks to 4130 prior to surging towards 4350. An imperfect variation would suggest the pattern’s completion and an imminent breakou0 towards 4260.

Source: SpreadEx

WTI CRUDE (1 day)

The recent drop to 75 a barrel offered a bounce in oil as it found support at the lower end of the ascending channel. If the upside continues, prices could extend to 81 and perhaps 85, whereas a slide under 72.50 would imply additional pressure towards 67.

Source: SpreadEx

GOLD (1 day)

Gold’s price action points towards an inverse head-and-shoulders pattern with expected support at 1900 per ounce. If prices fail to fall as far or drop harder but still reverse, bulls must reclaim the double-top of 2020 to instigate upticks. On the flip side, only 1820 would suggest the top at 2080 is in.

Source: SpreadEx

PLATINUM (1 day)

Platinum is heading towards the 800 handle where it’s expected to bounce amidst a double-bottom formation. Additional drops could open the door to the next round support seen at 750. Reversing earlier is unlikely to bear any fruits towards 1K unless bulls recapture 950.

Source: SpreadEx

USD/JPY (1 day)

The Japanese yen weakened as much to reach multiyear lows against the dollar but reached shy of USDJPY 152 to form a triple top. A rejection here would imply at least pullbacks towards 148.79 and 147.30, with the chances of 145s increasing the lower we get. Breaking higher would bring 153 closer, as it would suggest price discovery.

Source: SpreadEx

USD/CAD (1 day)

Loonie appears to be under short-term pressure after receiving rejection at 1.39, but the pattern resembles a cap-and-handle pending further upsides towards 1.40. At the same time, any upward leg would also reveal a potential wedge pattern, which would have a reversing effect on prices, breaking the swing support and opening up 1.3490.

Source: SpreadEx

EUR/GBP (2 hours)

A double-top formation may have competed at 0.875 in EURGBP, becoming a short-term cap-and-handle pattern pending a drop towards 0.87 or a deeper downturn to 0.865. if the peak gives way to potential bullish pressure, the following logical level bulls will face lies at 0.88.

Source: SpreadEx

CAD/JPY (1 day)

Another cap-and-handle appears to have ended in CAD/JPY this time, with prices above 107.47 eying the peak of 111.25 and potentially the 112 handle next. If the regional support succumbs to potential pressure, 104.00 will come into the spotlight. Meanwhile, the short-term ranging price action could continue.

Source: SpreadEx