Technical Analysis Weekly

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 (4 hours)

Wall Street accelerated to 34400, met stiff resistance and reversed below the base trend. The support at the 33k handle repelled bearish price action, leaving back only a failure pattern, and it is currently recovering. It could reclaim the 34k handle and upper trendline if it remains within the channel. Otherwise,  slide to 32500.

Source: SpreadEx

UK 100 (4 hours)

The FTSE pulled back to 7725 in what appears to be an incomplete flag pattern. If the short-term trend prevails, we could see 7690 as brief support, with 7300 major. Inversely, if a pennant pattern is completed instead, the index could break record highs once the 7875 is lost.

Source: SpreadEx

Eurostocks 50 (4 hours)

Eurostocks 50 is in a clearly defined uptrend, with the consolidation originating at  4200 forming a pennant. If the index reclaims the top, we could see the pattern come through and higher prices towards 4300. But further weakness could see a flag print instead, with the 4k handle back in the spotlight. 

Source: SpreadEx

Natural gas (4 hours)               

Natural gas remains heavily downward but recently printed a wedge pattern with a trough at 3.10. If prices break above the upper trendline, the commodity could revisit 4.20, but in case bulls receive a rejection, the trend may recommence past 3.10 and towards 2.00.

Source: SpreadEx

Gold (1 day)

Gold continued to ascend as it ended a short-term consolidation phase, with the 2k handle now within short-term reach. If bulls fail to take over 1965, prices could soften towards 1880 and 1825 in a downward spiral case.

Source: SpreadEx

Brent Crude (4 hours)

Brent oil completed a failure pattern above its preceding two peaks, increasing the potential of a leading wedge pattern. 91.50 is short-term resistance, so long bulls defend the lower wedge trendline. Falling outside could see a deeper trough or invalidate the pattern entirely, with 81.50 back in focus. But in such case, the leading wedge might have completed the week before, and this leg up is a bullish impulse, simply in correction.

Source: SpreadEx

GBP/USD (4 hours)

Cable recently formed a double top with increasing chances of turning price action into a larger range. 1.2450 is significant resistance, and if breached, it could initially open the door to 1.2600 and beyond. But if bearish bets weigh on, the pair could revisit the range low at 1.1875, with temporary supports at 1.2290 and 1.2080.

Source: SpreadEx

USD/CHF (4 hours)

USD/CHF price action appears overlapping, with another leg down below 0.9086, completing the pattern for a potential reversal. 0.9412 is major resistance, but in the short term, eyes will shift to 0.9240. The descent could extend as low as 0.8950 before the wedge is confirmed.

Source: SpreadEx

AUD/USD (4 hours)

A potential broadening wedge pattern could be in the works for Aussie, with the top at 0.7125 back on the radar so long bulls keep bears above 0.6900. Losing the stronghold could expose prices to 0.6700.

Source: SpreadEx

National Express (4 hours)

National Express has come off shy above the bottom of 125 but remains in a corrective pattern, either a flag or pennant. A short-term upside towards 150 to the upper channel could be seen in the former case. But if bulls fail to move past 140, bears could send prices back to the swing low, in a successful break below the lower channel near 133.

Source: SpreadEx