Technical Analysis Weekly 14.11.2022

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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Wall Street (4 hours)

Wall Street continues with its accelerating upward trend as prices trade within a bullish channel. 34300 is significant resistance before attempting the upper trendline above the 35k handle, where an initial rejection is expected. 33k is critical short-term support, the break of which might halt the uptrend and cause a retracement down to the 32k handle.

Source: SpreadEx 

UK 100 (4 hours)

UK 100 is trending strongly higher but has so far has failed to decisively breach 7500, abandoning the attempt at 7650 for a pullback early. Bullish momentum faded above the upward channel twice in a row, with a leg towards the lower trendline below 7300 likely. Losing the channel base will expose 7200 and then the support at 7100. An upside move must first breach 7500.

Japan 225 (4 hours)

Japan 225 seems to have broken outside its rising wedge pattern, opening the door to 28700 and 29300 as long as the bottom trendline holds. If 27400 is lost, a deeper correction might be seen, with support at 26500 and the previous low of 25600. Typically, the breakout leads to a move equal to the first leg’s height, which brings us to 29200.

Source: SpreadEx 

Gold (4 hours)

Gold has completed a falling wedge pattern after breaking above the descending trendline, with 1830 back on the radar as a possible upside target. Due to the extended upward leg, a pullback to 1730 might be seen, with 1680 likely to reverse most of the gain down to 1625. Otherwise, an attempt at 1890 might begin.

Source: SpreadEx 

Natural Gas (4 hours)

Natural gas has formed 4/5ths of a three-rising-valleys pattern, with the break of 6.5 and 7.2 paving the way to 8.30; the height of the first leg from the breakout point. If the lower trendline gives way, 5.35 will return to focus, with its defeat offering further downside toward 4.90 and 4.30

Brent Crude (4 hours)

Brent is trading within a possible rising wedge with only an upward leg left to complete the pattern. Getting past the previous high at 99.50 will offer technical completion above or at 100.00, with the upper trendline an actual top before a pullback. If the bottom trendline near 93.00 breaks instead, 90.00 is short-term support above 88.00 and the primary floor at 82.50. If the pattern fails, 105.00 could be seen.

Source: SpreadEx 

EUR/USD (4 hours)

Euro recently broke the broadening wedge upper trendline against the dollar, finding a ceiling at 1.0360. Above there lie the 1.0610 and 1.0790 resistances, remaining in reach as long as the upper trendlines halt the current pullback near 1.0200-1.0250. Re-entering the pattern will bring parity into the spotlight as a possible downside target if the near-term floor at 1.0200 succumbs to pressure.

Source: SpreadEx 

GBPCHF (4 hours)

GBP/CHF recently completed the right shoulder of a head-and-shoulders pattern, with the path to the golden pocket wide open. If the Fibonacci supports at 1.0430 and 1.0882 give in, 1.0700 will be a solid floor to break through. On the flip side, 1.1400 is the ‘shoulder’ resistance likely to be reached if the Fibonacci resistance at 1.1250 breaks, paving the way to 1.1580.

Source: SpreadEx 

USD/CAD (4 hours)

USD/CAD slid below the head-and-shoulders neckline and is headed towards 1.3200. If it losses the round support, the chances of falling below 1.3000 then 1.2954 will increase. However, if the support holds firms, an upside attempt could see the pair reaching the neckline for a potential retest. In the interim, 1.3385 might act as minor resistance.

Source: SpreadEx 

UK Long Gilt (4 hours)

UK long gilts exited a rising flag pattern after a retest of the 100.00 round support with chances of heading above 115.00 increasing; this is where the height of the initial upward leg would bring gilts. 110.00 is significant resistance before there, but it must maintain an upward bias in triple-digits territories; otherwise slide back towards 95.00

Source: SpreadEx