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.

-----------------------------------------------------

WALL STREET (4 hours)

Lack of demand past 35350 may turn the price formation of Wall Street into a triangle if bears fail to take over 34320, offering a descending or symmetrical variation. Sliding under 34060 prematurely will increase the chances of a falling pennant, with an upward surprise eying 35600.

Source: SpreadEx

UK 100 (4 hours)

If the UK’s Footsie soars past the regional top of 7810, reclaiming 7900 may trigger further upside towards 8k, leaving behind a flag. Holding the grip above 7600 or the upper flag trendline will keep chances intact, but sliding within the flag might see additional drops, opening up 7525 but unlikely 7370.

Source: SpreadEx

RUSSELL (4 hours)

Losing the head-and-shoulder neckline might confirm the pattern, seeing prices slide towards 1810 and perhaps 1790. If the neckline holds firm, only the break of 1930 may invalidate the formation, with sorter-term price action past 1880 seen as consolidation.

Source: SpreadEx

GOLD (4 hours)

Gold’s bounce at the lower triangle trendline appears to improve the chances of the pattern’s completion unless bulls lose $1920/oz or $1910/oz. Crawling past the last correction high of $1980/oz could offer an attempt at 2k.

Source: SpreadEx

NATURAL GAS (4 hours)

Natural gas prices stopped and reversed at the upper trendline of an ascending channel shy of $3.25/cf, with the commodity below the $3 handle opening up speculation for further declines towards $2.50/cf. With a short-term flag likely at play, focus shifts on the regional support of $2.70/cf, provided bulls fail to reclaim the round resistance or the local peak.

Source: SpreadEx

COPPER (1 day)                    

The long-term formation in copper resembles a triangle that may or may not have completed its fourth (out of five) corrective wave at $385/t. Further upside past $391/t could validate a prolonged wave or invalidate the pattern with a bullish pennant should prices move beyond $402/t. Falling under $371/t may instead see bearish momentum towards $362/t increase.

Source: SpreadEx

EUR/GBP (4 hours)

The EUR/GBP pair appears to be in a similar triangular formation, pending completion confirmation of the fourth corrective wave.  If it is completed at £0.857, prices should stop and reverse by the upper trendline or before £0.8630. Otherwise, a continuation towards £0.8670 may offer a prolonged correction or invalidate the formation entirely. Expected support lies at £0.8525 in case the lower trendline gives in.

Source: SpreadEx

USD/CAD (2 hours)

A head and shoulders pattern may be under formation on USD/CAD, with support at $1.35 expected to send prices to $1.3640 to complete the right shoulder. If the triple bottom succumbs, bears have major support slightly under $1.34, invalidating the idea. Surging past $1.3570 will increase the probability of completing the right shoulder, whereas faltering near $1.3580 will keep uncertainty elevated.

Source: SpreadEx

CAD/JPY (4 hours)

An ascending triangle may have formed on CAD/JPY, with the latest upward leg to a double top formation opening the door to short-term pullbacks before further upsides towards the measured-move projection past ¥113. 110 is major round resistance ahead, with a leg below ¥108.50, exposing ¥106.55.

Source: SpreadEx

CARVANA (1 day)

Carvana’s stock price resembles a cup-and-handle pattern, with the triple top at $57 potentially clearing the path to the handle’s measured-move projection of $78. If bears lose the bottom of $36, the long-term formation may end up being an inverse head-and-shoulders, provided $20 holds firm.

Source: SpreadEx