Weekly Technical Analysis

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 paused at the round 34k level but continued its upward move after completing a flag pattern at 33330. Bulls might fail to get past the descending channel trendline, forming a temporary top, but doing so will expose 34520. If 33575 gives way to bears, we might see a deeper slide towards 33270.

Source: SpreadEx

US RUSSELL 2000 (4 hours)

The Russell 2000 bounced at the double bottom around 1740 and pushed higher to 1810, where it formed a double top. Bulls are now facing a sideways market, which must break for the rally to resume towards 1870. Alternatively, a break under the lower end of the range could signal a retest of 1690.

Source: SpreadEx

UK 100 (4 hours)

The FTSE 100 index has surged above 7850, but prices have extended a lot to be at risk of a potential selloff down to 7800. If the impulse is completed, it might attract additional bearish bets towards 7720. On the other hand, if the index breaks past 7915, we might get that leg to 8045.

Source: SpreadEx

LIGHT CRUDE (1 days)

WTI crude found support near the flag low of $80/bbl and is on an upward trajectory with a possible target at $87.20/bbl. It becomes unlikely to form the right shoulder of an inverse head-and-shoulders pattern as we crossed above $82.70/bbl, albeit marginally at $83.50/bbl. If the support at $79/bbl breaks, a pullback towards $76/bbl might be seen.

Source: SpreadEx

GOLD (4 hours)

After completing a flag pattern, gold rallied to $2065 per ounce, shy of the measured-move peak at $2070 and the high of $2080. While a deeper pullback from the current levels could lead prices under $2k, a further dip towards the $1965 support per ounce would be needed to confirm a reversal. On the upside, breaching $2030 could pave the way to the peak.

Source: SpreadEx

SILVER (1 day)               

After retesting the bearish trendline around $24.80/oz, silver shows signs of a long-term trend change. If bulls fail to capture the resistance of $27.50/oz, prices might retrace back towards the channel and even fall down to $23.50/oz. On the other hand, the upside leg could extend as high as $30/oz if bullish momentum rises.

Source: SpreadEx

EUR/USD (4 hours)

Bulls attempting to push EUR/USD  above the $1.10 handle were victorious as the pair appears to have formed a cup and handle pattern. The key support at $1.0833 must be watched closely as its break could see the pair revisiting the low of $1.0790 if $1.0923 gives way. On the other hand, if bulls manage to propel prices above $1.1120, the focus will shift to $1.1185.

Source: SpreadEx

USD/CAD (1 day)

Loonie appears to be targeting the flag pattern low under $1.33, increasing the chances of a breakdown towards $1.3260 and $1.3227. Surging past $1.34 may offer bullish respite, with the next resistance settled by $1.3505.

Source: SpreadEx

USD/CHF (1 day)

USD/CHF has been on a downward trend, but a recent triangle breakout hints at a possible reversal near 0.8750 (the measured-move low). The critical support level at 0.8860 might hold firm if bullish bets increase, leading to a possible uptick towards 0.9080, should 0.8926  give way. On the other hand, if the impulsive phase extends, the pair could just form a double bottom at the aforementioned low.

Source: SpreadEx

Bitcoin (USD) (1 day)

Bitcoin price has been trending higher, with buying momentum rising after the triangle breakout, resulting in a takeover of the 30k handle.  However, the measured-move high of 30800 has already been reached, and traders might start unloading some of their positions towards 28360 if not 26550. If the bulls manage to push prices above the major support (now resistance) of 32960, BTC could be in a bull market.

Source: SpreadEx