Technical Analysis Weekly 22.08.2022

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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SPX 500 (4 hours)

SPX 500 hit a local top after finding sellers above 4,350 and is printing lower lows towards the 4,200 mark. If the market continues its downward move toward the 4,100 mark a test of the 38.2% Fibonacci at 4,100 can be expected. Inversely, rising momentum would offer a chance at 4,000. A rise above 4,250 will increase bullish sentiment and might negate this bearish view.

Source: SpreadEx 

US Tech 100 (4 hours)

US Tech 100 successfully broke below the ascending channel after posting a high near 13,700. The market is heading toward the 13,000 mark to correct and complete a head-and-shoulders pattern. Further downside movement could lead to the 12,750 mark and a potentially larger head-and-shoulders pattern. A close back within the channel would counter bearish sentiment above 13,400 and could see the top revisited.

Source: SpreadEx 

RUSSELL 2000 (4 hours)

Russell continues to descend after failing to break 2,000, forming a false break. The round level failed to turn into support and further movement to the downside is expected to test 1,900 in the coming days. If the support is weak, a close below would increase appetite for a drop to 1,850, otherwise, a bounce toward the 2,000 might take place. If it flips to resistance, the bearish trend could continue.

Source: SpreadEx 

Gold (4 hours)

Gold continues to decelerate towards 1,750 after successfully printing a reversal diagonal pattern. If more sellers join the trend below the 50% Fibonacci price could be led toward the 1,730 golden ratio next. A move and close above 38.2% near 1,770 would increase bullish bets toward 1,800. Gold could range until a breakout adds to either up or downward bias.

Source: SpreadEx 

Copper (4 hours)

Copper rejoined the bullish trend after forming strong support at the 50% Fibonacci near 355,00. The price is now heading towards the local top of 370,00, the break of which could lead to further upside toward the 380,00 mark. If bearish commitment improves, the next support is near 350,00, where the golden ratio of the last upward leg lies. Sliding lower would negate the bullish view and expose 340,00. 

Brent Crude (2 hours)

UKBRENTOIL continues to descend in a diagonal pattern after bears added to their shorts near the 98,00 trendline resistance.  The market could revisit the previous low at 91.50 where we expect a double bottom after a false break towards 90.00 to incur. A close above the trendline resistance could signal a reversal with the first target above triple digits. 

Source: SpreadEx 

Natural Gas (4 hours)

Natural Gas posted a double top after failing to extend to the 10.00 round resistance. The price slid back below 9.50 which has flipped to resistance. If the price continues to fall, the 38.2%-61.80% congestion zone between 8.20-8.70 could offer support and bulls could start to reaccumulate. Otherwise, they might reattempt to capture the resistance at double digits earlier. A close above 10,00 would negate the short-term bear view and might see the price reach all-time highs near 10.50. 

Source: SpreadEx 

GBP/USD (4 hours)

The bearish channel formation of GBP/USD successfully accelerated the trend after breaking outside the lower band. The market is likely to test the local low near 1.1760 and possibly slide lower towards 1.1700 before a short-term reversal could ensue. If bulls manage to hold the line, it could lead the pair towards the 1.20 mark, where we expect at least an initial rejection, if bulls successfully reenter the channel.

Source: SpreadEx 

EUR/USD (4 hours)

EUR/USD broke below the bullish flag pattern after bears pushed prices through the 1,02 support. The price continues to slide towards parity and we expect at least a slight bounce at the strong support before the main trend weakens the pair towards the 0.9970 mark. A less likely scenario is for EUR/USD to reverse towards 1.01 before seeing long liquidations below the market low.

Source: SpreadEx 

USD/JPY (4 hours)

USD/JPY bulls are in clear control of the pair’s direction above the 135.50 mark. The price has extended near the 38.2% Fibonacci at 137.50 with no major pullback in place. We expect bears to push the pair down towards 136.50 before the trend continues to the 138,00 mark. A break above would eye the 138.80 Fibonacci and the previous top of 139.50. If bullsish appetite sours, the 134.60 could be tested.

Source: SpreadEx