Technical Analysis

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Technical Analysis – WTI crude oil futures plunge near 3-week low; bearish phase holds

Posted on July 17, 2018 at 8:13 am GMT

WTI futures for August delivery recorded a fresh more than three-week low of 67.56 on Monday, while the sharp bearish run started following the pullback on the 74.64 resistance level last Tuesday. Also, the price plunged below the 61.8% Fibonacci retracement level of the upleg from 63.37 to 75.24 of 67.90, indicating that a bearish movement is in play in the near term. In the 4-hour chart, the momentum indicators are supportive of the bearish picture, with the RSI remaining into the oversold zone [..]

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Technical Analysis – GBPUSD turns to sideways channel in Bollinger Band; neutral bias in short term

Posted on July 17, 2018 at 6:36 am GMT

GBPUSD has been trading in a neutral mode over the last couple of days after the rebound on the lower Bollinger Band near 1.3100 on July 13. The price seems to be losing its strong negative momentum as the Bollinger Band is narrowing and suggests that the next movement will be sideways. It is worth mentioning that the cable is still developing below the 23.6% Fibonacci retracement of the downleg from 1.4375 to 1.3050, around 1.3360. In the daily timeframe, the technical indicators are recommending [..]

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Technical Analysis – Bank of America stock stands within a bearish correction; “death cross” is expected

Posted on July 16, 2018 at 1:34 pm GMT

Bank of America stock price has been holding within a bearish correction mode as it found a strong resistance obstacle on the 33.00 handle in mid-March. A “death cross” is in progress as the 50-day simple moving average (SMA) falls below the 200-day SMA to indicate that lower prices lie ahead. From the technical point of view, the RSI and the stochastics have both weakened, with the former dropping below its neutral threshold of 50 and the latter easing below the overbought territory after the [..]

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Technical Analysis – Gold rebounds on 1-year low; bearish sloping channel holds

Posted on July 16, 2018 at 8:36 am GMT

Gold dipped to a fresh one-year low of 1236.27 during Friday’s trading session and posted a strong negative day, while it closed well above its intraday trough. Zooming in the 4-hour chart, the price today found a significant hurdle on the 20-simple moving average (SMA) and failed to jump above it. The technical indicators are sending different signals with the Relative Strength Index (RSI) flattening in the negative zone, however, the MACD oscillator created a bullish cross with its trigger line in the bearish [..]

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Technical Analysis – EURUSD surpasses SMAs in near-term; 23.6% Fibonacci acts as strong obstacle for bears

Posted on July 16, 2018 at 6:50 am GMT

EURUSD remains below the strong resistance level of the 23.6% Fibonacci retracement level around 1.1760 of the downleg from 1.2550 to 1.1510. However, since yesterday the world’s most traded currency surpassed the 20- and 40-simple moving averages (SMAs) in the daily timeframe, suggesting a possible upside correction. From the technical point of view, the technical indicators are endorsing the bullish bias but are still moving with weak momentum. The RSI indicator is holding slightly above the threshold of 50, while the MACD oscillator is [..]

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Technical Analysis – GBPJPY retreats from 1 ½-month highs; 20-day MA strong support

Posted on July 13, 2018 at 1:28 pm GMT

GBPJPY formed a fresh top at the 1 ½-year high of 148.88 today in the four-hour chart before reversing lower to stop at the 20-period moving average which for once again stood a wall to bearish actions, holding the upward bias in play. The RSI and the MACD have both weakened, with the former dropping towards its neutral threshold of 50 and the latter easing below its red signal line. Still, upside risks have not been faded out yet as both indicators continue to fluctuate [..]

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Technical Analysis – USDCAD turns to consolidation but maintains upward pattern

Posted on July 13, 2018 at 6:50 am GMT

USDCAD turned neutral after its downfall from the 1-year high of 1.3385, finding support at the uptrend line it started building in mid- April. In the short-term, consolidation is likely to be continued as the RSI has flattened slightly above its neutral threshold of 50 and the MACD has paused its downward move near zero, while the 20-day moving average has lost steam as well. On the upside, the area between 1.3180 and 1.3203, outlined by the 23.6% Fibonacci retracement [..]

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Technical Analysis – USDJPY gains appeal above 112; golden cross eyed

Posted on July 12, 2018 at 3:40 pm GMT

USDJPY managed to resume its bullish pattern started at the end of March from 104.62, hitting a fresh six-month high of 112.61 on Thursday. The market will likely hold the uptrend line intact as long as the price continues to move above its moving averages and should the 50-day (simple) moving average (MA) successfully complete its bullish crossover with the 200-day MA, the upward movement could stretch into the longer term. Yet, the RSI supports that the rally is overdone as the index has [..]

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Technical Analysis – NZDUSD creates bullish doji candle but risks still on the downside

Posted on July 12, 2018 at 1:56 pm GMT

NZDUSD bounced higher once it printed a doji candle in the four-hour chart today, though the MACD points that risks remain to the downside as the indicator continues to expand in negative territory and below its red signal line. The red Tenkan-sen line sends bearish signals as well, distancing itself to the downside from the blue Kijun-sen line. A leg up could immediately visit the area formed by the 50-period simple moving average at 0.6783 and the 38.2% Fibonacci retracement of 0.6791 of the upleg from [..]

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Technical Analysis – WTI oil futures tumble nearly 5% but hold in bullish area

Posted on July 12, 2018 at 7:11 am GMT

WTI crude oil futures (August delivery) had their worst day in a year yesterday losing nearly 5% in the wake of new trade threats from the US to China. The price, however, managed to stay above 70 yesterday, finding support at the 20-day moving average (MA) despite the sharp fall from 74. Momentum indicators have weakened, with the RSI retreating towards its neutral threshold of 50 and the MACD distancing itself further below the red signal line, suggesting that weakness might persist in the [..]