Technical Analysis Weekly 20.02.2023

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)

The SPX 500 formed a double bottom at 4050, confirming a sideways correction. Further declines could lead the index towards the 4k handle, with additional drops potentially reaching 3950. A move past the 4130 mark will bring the peak of 4200 back into focus.

Source: SpreadEx

UK 100 (4 hours)

The UK’s 100 index might have completed or is due to complete a wedge pattern. After a surge to 8045 and a drop to 7955, only to recoil to the 8k handle signals an imminent breakout. If 7950 fails to hold, the index could slide to 7850. Otherwise, price discovery could see us up to 8100 next.

Source: SpreadEx

SWISS (4 hours)

The Swiss index continued to descend into its flag pattern unless the low at 11035 completed it. If the index crawls towards the top of 11460, the pattern might already be complete. Further drawbacks could bring the index below the 11k handle, opening the door to 10790.

Source: SpreadEx

BRENT CRUDE (4 hours)

After hitting a low of 81.80, Brent oil might have completed a flag pattern, suggesting increasing demand towards 87.00 and 89.00. If bearish bets rise, the base break at the 80.00 handle might offer a retest bounce unless bears aim at 77.50 instead.

Source: SpreadEx

NATURAL GAS (1 day)                    

Natural gas decreased to the triple bottom low of 2.25, paving the way towards 1.50. If demand declines at the support, the chances of seeing some respite towards 3.00 will be restricted. If the commodity succumbs lower, there is a risk of further declines towards 2.00

Source: SpreadEx

SILVER (4 hours)

Silver extended losses as it appears in a bearish impulse, pending further declines towards 20.00 unless it hovers above 21.00. A potential bounce could see bears fail for an upward spiral towards 23.50, but it requires regaining control of the short-term resistance at 22.30

Source: SpreadEx

AUD/USD (4 hours)

Aussie formed a double top near $0.7150, increasing the chances of completing the neckline of a potential head-and-shoulders pattern near 0.68. Biased towards the top of the neckline channel, the pair might continue to accelerate for at least a retest of 70 cents. Another attempt at 68 cents might initiate if things reverse, opening the door to 0.6680.

Source: SpreadEx

USD/CAD (4 hours)

USD/CAD has been consolidating somewhat symmetrically, resembling a triangle pattern. If the pair remains below 1.3700 while above 1.3260, the sideways price action might confirm the pattern and lead to further upside. Losing the bottom might bring 1.3080 back on the radar, whereas an upward leg could see 1.3800 revisited.

Source: SpreadEx

EUR/GBP (4 hours)

Euro crawls higher in an ascending channel against the pound, heading closer to 0.90. 0.8850 appears as the lower support trendline for a potential reversal in the event of short-term declines, with 0.8800 invalidating the pattern and paving the way to 0.8770. Any upside might meet resistance at 0.8928, should momentum be strong for a break beyond the round 0.8900 level.

Source: SpreadEx

NZD/CHF (4 hours)

NZD/CHF has formed a wedge pattern down at 0.5750, but the swing has not offered much bullish momentum so far. Sliding lower could invalidate the pattern and reach a low of 0.5725, whereas a reversal might clear the path to 0.5836 if bulls manage to reclaim 0.5818.

Source: SpreadEx