Technical Analysis Weekly 03.10.2022

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 (2 hours)

Wall Street retested the bearish side of the descending channel and slid lower, breaking past 29000. If the 28,900 the 61.8% Fibonacci retracement of the move from 34300-31000 28900 fails to hold, 29,650 is the next milestone for bulls. Falling below 28,580 exposes 28,500 and 28,000 as next support. 

Source: SpreadEx 

UK 100 (2 hours)

UK 100 traders lost the 7000 handle and fell outside the base channel originating on June 6. A retest of its bearish bottom side could send prices to the Fibonacci extension (of the 7650-6960 leg) near 6700. If the resistance weakens, 7000 is round resistance above 6960, with 7050 a false-break top.

Source: SpreadEx 

Germany 40 (2 hours)

Germany 40 lost 12400 and the round support at 12000, which is now short-term resistance. Failing to hold the 11800 base opens the door to 11,500 the Fibonacci retracement of 14700-12400, near where the descending base trendline lies. A move higher exposes 12,150 and even 12,400 if bullish momentum accelerates.

Source: SpreadEx 

Gold (2 hours)

Gold prices stopped near the channel bottom at 1625 and reversed toward 1680. The bias remains bullish as long as prices hold above 1650, which is the 138.2% Fibonacci extension of the 1825-1700 leg. Breaking higher brings 1700 into the bull's radius. But the short-term top must give in.

Source: SpreadEx 

Natural Gas (2 hours)

Natural gas prices did not get past the golden pocket at 7.10, with the inverse head-and-shoulders paving the way to 5.00. Above there lies the 78.6% Fibonacci of the 5.30-10.00 leg near 6.30, with 6.00 a round support in between. If the top is taken out, 7.50 makes a decent resistance.

Brent Crude (2 hours)

Brent oil stopped and reversed at the 161.8% Fibonacci of 105.00-91.50 near 83.00 after retesting the ending diagonal trendline. Maintaining a bullish stance above the 88.80 top exposes 90.00, 91.50 and the 78.6% Fibonacci at 94.50. 86.00 and the floor below 83.00 are supports.

Source: SpreadEx 

GBP/USD (2 hours)

GBP/USD recovered to 1.1275, forming an upward leg that could extend to 1.1400. There it can flip the support to resistance or break toward the 1.1520 top if the channel fails to trigger profit-taking. The retest of 1.1200 might offer a pullback to a Fibonacci retracement level of the 1.0320-1.1275 leg at 1.1050, 1.0920 and 1.0800.

Source: SpreadEx 

EUR/USD (2 hours)

EUR/USD crossed back above the channel and met resistance at 0.9855. 0.9900 and parity remain on the radar, but 0.9860 must give in to get there. If not, a pullback down to the 38.2% Fibonacci retracement of the 0.9535-0.9855 leg at 0.9730 could be seen unless 0.9787 holds firm or bears send the price to the 50% near 0.9700 instead.

Source: SpreadEx 

EUR/GBP (2 hours)

EUR/GBP plunged to 0.8710 after a rally up to 0.9282 as bulls failed to hold the 50% line at 0.9000. The downside leg retested the 0.8710 support with a pullback up to 0.8850 and 0.8932 Fibonacci retracements in the cards. If the support is lost, losses might extend to 0.8600 unless the ascending channel holds prices around 0.8660.

Source: SpreadEx 

Lloyds (2 hours)

Lloyds extended to 50.00 before a U-turn down to 40.80, where it met support. The 38.2% inverse Fibonacci of 42.00-47.50 at 40.00 is critical support. If lost, the 61.80% equivalent near 38.70 comes into focus. Otherwise, the channel bottom might hold, sending prices above 42.00 for a potential rally to the 43.30 and 44.00 Fibonaccis.

Source: SpreadEx