Technical Analysis

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Technical Analysis – German 30 stock index loses momentum after creating double top

Posted on June 18, 2018 at 1:09 pm GMT

The Germany 30 stock index has plunged today after the significant bounce on the double top level near the 13200 barrier. The sharp sell-off has driven the price towards the 50- and 200-simple moving average (SMA) in the medium-term, which are expected to post a bullish crossover in the next few sessions if the price recoups the losses. Looking at the daily timeframe, the RSI indicator holds near the 50 level and is sloping down; some caution may be warranted given that the indicator is trying to enter the negative territory. Moreover, [..]

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Technical Analysis – Gold trades near 6-month low; confirms medium-term bearish structure

Posted on June 18, 2018 at 8:49 am GMT

Gold prices plummeted more than 1.7% on Friday, reaching a fresh six-month low of 1275.30 after the bounce off the 1303 resistance level. The neutral bias shifted to bearish as the price penetrated the trading range 1289 – 1307.50 to the downside, experiencing further losses. Despite the latest upside pullback, the bearish picture in the short-term is further supported by the technical indicators. Momentum indicators in the 4-hour chart are holding in the negative threshold. The RSI indicator is flattening [..]

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Technical Analysis – EURUSD pares some losses; bearish view remains in near term

Posted on June 18, 2018 at 6:41 am GMT

EURUSD is attempting to reverse some of Thursday’s aggressive losses but the risk is still to the downside as the trend remains bearish. The price dived below the 38.2% Fibonacci retracement level of the upleg from 1.0340 to 1.2560, around 1.1710. The short-term technical indicators are neutral to bearish and point to more weakness in the market. Looking at the daily timeframe, the moving averages are sloping down following the price action. The Relative Strength Index (RSI) is flat in the negative [..]

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Technical Analysis – GBPJPY retreats sharply; maintains short-term bearish bias

Posted on June 15, 2018 at 8:26 am GMT

GBPJPY plunged below the 38.2% Fibonacci retracement level of the downleg from 153.80 to 143.20, around 147.25, which overlaps with the 40-simple moving average in the 4-hour chart. The aggressive bearish rally started during yesterday’s session and has shifted the near-term bias from positive to negative. Also, the momentum indicators are supportive of the bearish picture. In the short-term, the Relative Strength Index indicator dropped below the 50 threshold after it bounced off the positive area, while the MACD oscillator lies below the trigger and zero lines. [..]

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Technical Analysis – USDCAD prints fresh 1-year high; strongly bullish in near term

Posted on June 15, 2018 at 6:33 am GMT

USDCAD has been surging seen Thursday’s trading session, creating a fresh one-year high of 1.3140. The price is trying to surpass the 61.8% Fibonacci retracement level of the downleg from 1.3800 to 1.2060, around 1.3130, increasing the chances for more aggressive advances. The technical indicators continue to send bullish signals, suggesting that the strengthens in the market is not over yet. The RSI is currently increasing positive momentum towards its threshold of 70 and is pointing upwards, while the MACD [..]

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Technical Analysis – Cocoa futures rebound to challenge the upper bound of the descending channel

Posted on June 14, 2018 at 3:43 pm GMT

Cocoa futures for July delivery have finally reversed to the upside last Friday after printing lower highs and lower lows in the preceding six weeks to reach a three-month low of 2,245 on June 7. The downward pattern started at the end of April, however, may not change unless the market manages to crawl substantially above the descending channel. Momentum indicators in the four-hour chart though are currently supporting that positive momentum is likely to strengthen in the short-term. Specifically, the RSI is picking up speed above 50 and [..]

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Technical Analysis – USDMXN close to 1½-year high; possibly overbought

Posted on June 14, 2018 at 2:46 pm GMT

USDMXN has appreciated considerably after reaching an eight-and-a-half-month low of 17.9347 on April 17. On Wednesday, it touched a near one-and-a-half-year high of 20.8235, while it is currently trading not far below that peak. Adding to the clearly bullish short-term picture are the positively-aligned Tenkan- and Kijun-sen lines. The Chikou Span, however, may be pointing to an overbought market; a reversal in the near-term should not be ruled out. Further advances may meet resistance around yesterday’s high of 20.8235, while [..]

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Technical Analysis – McDonalds stock erases rally; could weaken further in short term

Posted on June 14, 2018 at 12:44 pm GMT

McDonald’s stock price has been making higher highs and higher lows since the end of February, creating an upward tilting channel. In the short-term, prices moved lower after the pullback on the four-month high of 171.60. The technical indicators, though, continue to send neutral to bearish signals, suggesting that the softness in the market is not over yet. The RSI has flattened in positive levels, slightly above 50 indicating that the market could weaken a little bit in the short-term until the [..]

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Technical Analysis – NZDJPY mostly bullish in the short-term; enters Ichimoku cloud

Posted on June 14, 2018 at 10:20 am GMT

NZDJPY is trading around 300 pips above the one-and-a-half-year low of 74.54 recorded in late May, while it is relatively close to Wednesday’s two-month high of 77.85. The appreciation over the last couple of weeks is supportive of a bullish picture in the short-term. This is also projected by the positively-aligned Tenkan- and Kijun-sen lines, though the easing Kijun-sen is pointing to weakening positive momentum. Immediate resistance to advances seems to be taking place around the current level of the [..]

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Technical Analysis – NZDUSD stands in Bollinger Band with weak momentum; consolidating in near term

Posted on June 14, 2018 at 8:49 am GMT

NZDUSD has been trading within a consolidation area over the last ten days with upper boundary the 0.7050 resistance level, which holds near with the upper boundary of the Bollinger Band, and lower boundary the 0.7000 handle, which coincides with the lower Bollinger Band. Moreover, the technical indicators are sending neutral signals, suggesting that the sideways move will continue. In the 4-hour chart, the RSI indicator is holding near the threshold of 50 and is moving slightly higher with weak [..]