Technical Analysis Weekly 27.02.2023

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 decelerated to 3950 after a confirmed break below its bearish channel, paving the way to the next support at 3900. Sliding lower might reach the low of 3850 but is unlikely to get through it. 4050 is a critical resistance in case bulls recapture the 4k handle.

Source: SpreadEx

UK 100 (4 hours)

The UK 100 appears to have put in the right shoulder of a potential head-and-shoulders pattern at 7950. If 7850 fails to hold, it would confirm the pattern, and the index might see further losses to 7740. On the other hand, moving past the right shoulder might invalidate the H&S (or the right shoulder peak) after reclaiming the top.

Source: SpreadEx

US TECH (4 hours)

The US TECH index has either completed or is near completing a wedge pattern, increasing the chances of a pullback to 12250 or a dip towards 12405. Losing the swing low of 11895 might clear the path to 11540, but it is unlikely to close the week below there.

Source: SpreadEx

LIGHT CRUDE (4 hours)

The price action of crude oil resembles a triangle pattern, typically followed by a breakout to the direction of the predominant trend: down. Moving towards the swing low of 72.25 will increase the probability of a downward spiral to the 70.00 barrier first. Holding firm above 73.80 might offer some respite to the upper trendline near 82.00, with potential weakness near 78.50.

Source: SpreadEx

NATURAL GAS 2 Hours)               

Natural gas spiked to a February high after putting a low in at 2.15, opening up the chances to an inverse head-and-shoulders pattern. With a double top at 2.65 in focus, a downward leg towards 2.35 could print the right shoulder and continue the upward trend. If the top gives in earlier, the next resistance lies at 2.80. Easing below might invalidate the pattern, bringing 2.15 back into the spotlight.

Source: SpreadEx

GOLD (4 hours)

Gold is approaching the round support of 1800, offering an opportunity for short covering to 1827 and even 1855. If bulls fail to hold the line, the commodity could fall to 1780 next, where chances for some respite will increase. Ideally, a wedge pattern would support the upward bias.

Source: SpreadEx

GBP/USD (4 hours)

Cable resembles an incomplete wedge pattern, with a short-term decline anywhere below 1.1915 raising the chances of a pullback. The price might drop to a fresh low below 1.1841 before turning the other way around, but it will remain under pressure so long it trades under 1.20. Moving higher will face the 1.2147 resistance. 

Source: SpreadEx

GBP/JPY (4 hours)

GBP/JPY has been crawling higher in a wedge-looking fashion, and it might experience a breakout higher with or without a pullback. In the former case, the pair might extend its gains towards 165.42, provided it moves past 163.76 undeterred, whereas in the latter case, the downward move might expose 160.49 if 162.48 succumbs to short-term pressure.

Source: SpreadEx

USD/CHF (4 hours)

USD/CHF appears to have completed its inverse head-and-shoulders pattern and might hit 0.9461 on its way to 0.9550. Pullbacks might offer long positions if potential mean reversions keep the pair above 0.9350.

Source: SpreadEx

SCHRODERS (4 hours)

Schroders has formed a wedge pattern it might be due to deeper pullbacks to 465 if it losses 485, but it is unlikely to fall under 450. If bulls manage a solid bounce, the stock might break past the peak of 507 for an attempt at 525 next.

Source: SpreadEx