Technical Analysis

Technical Analysis – US 500 index touches 1-month peak but outlook remains neutral-to-bullish

Posted on July 6, 2020 at 11:48 am GMT

The US 500 cash index was promoting a bullish signal as it touched the 3,181 in the preceding session, but then it created a bearish doji candle. The technical indicators are mixed as the MACD is rising above its trigger line in the positive territory, while the RSI is sloping south around the 70 region. Moreover, the simple moving averages (SMAs) are suggesting a neutral-to-bullish mode as they give some optimism for upside tendency in the 4-hour chart. Hence, the short-run risk is looking neutral-to-positive at the moment and [..]

Technical Analysis – CHI50 stock index skyrockets to 12-year highs

Posted on July 6, 2020 at 10:40 am GMT

ChIna’s 50 stock index (CHI50 cash) ignored all nearby 2018 barriers on Monday and skyrocketed to 15,983, recording its best daily gain ever. After such an impressive rally, some downside retracement could be reasonable as markets do not move in one direction. The RSI and the Stochastics have also entered the overbought territory, but have yet to show signs of weakness, suggesting that there might be some room for improvement – may be a limited one – before a reversal [..]

Technical Analysis – Gold eyes key levels for fresh direction; bias skewed to the upside

Posted on July 6, 2020 at 8:04 am GMT

Gold opened with weak momentum on Monday in the daily chart, hovering slightly below the new almost eight-year peak registered last week. Nevertheless, the short-term bias is still skewed to the upside. Although frail, the RSI is holding comfortably above its 50 neutral level, while the MACD, despite stabilizing, remains within the positive area and marginally above its red signal line. Meanwhile, the price itself continues to trade above the upward-sloping 20-day simple moving average (SMA) and within the upper bullish Bollinger [..]

Technical Analysis – EURUSD’s positive tone strengthens

Posted on July 6, 2020 at 7:57 am GMT

EURUSD is tackling the 1.1302 resistance, suggesting that positive sentiment may be picking up in a sideways market that has held since the pullback from the 1.1421 peak. In spite of this pause, the positive picture has managed to remain intact, something also reflected in the Ichimoku lines and the bullish bearing of the 50- and 100-day simple moving averages (SMAs). Additionally, the short-term oscillators sponsor a neutral-to-bullish picture. The MACD, in the positive area, is ready to reclaim its [..]

Technical Analysis – USDJPY hovers in tight range; bullish after it bounces off 7-week low

Posted on July 6, 2020 at 7:47 am GMT

USDJPY is consolidating within tight Bollinger bands that are suggesting a potential sharp move either to the upside or to the downside. The price remains above the short-term moving averages; however, they are pointing down. The RSI indicator is heading south or into the bullish territory, while the stochastic is moving sideways below the overbought zone. If the price successfully slips beneath the 38.2% Fibonacci retracement level of the down leg from 109.85 to 106.07 at 107.50, it could meet the 107.32 [..]

Technical Analysis – US 30 index attempts to keep recent gains intact

Posted on July 3, 2020 at 10:54 am GMT

US 30 stock index (Cash) is resting on the 100-period simple moving average (SMA) at 25,790, merged with the upper surface of the Ichimoku cloud and finding further support from the positively charged 200-period SMA just beneath, at 25,746. At the glance it seems this mostly neutral picture that has taken over the last weeks may be here to stay for a while. Conflicting signals exist in the directional picture of the index. The bullish Ichimoku lines mirror growing positive [..]

Technical Analysis – Silver bulls meet long-term trendline, but not ready yet to give up

Posted on July 3, 2020 at 10:34 am GMT

Silver attempted to break the upper border of the neutral zone it has been ranging within this week, but its efforts proved unsuccessful as the trendline joining the peaks from September 2019 defended the bears once again at 18.42. Hence, the short-run risk is looking neutral-to-positive at the moment and another retest of the soft downward-sloping trendline is likely. Particularly, a decisive close above the 18.65 barrier might be what the bulls are eagerly waiting for to rally towards the three-year [..]

Technical Analysis – NZDUSD makes positive moves to retest ceiling of range

Posted on July 3, 2020 at 7:47 am GMT

NZDUSD recently overcame negative pressures jumping above the mostly flat 50- and 100-period simple moving averages (SMAs) and the neutral Ichimoku cloud to revisit the roof of the sideways market, which has held for around three weeks. Although currently stalled, this move is also reflected within the bullish Ichimoku lines. Furthermore, with positive momentum starting to pick up in the technical oscillators, the short-term picture is tilting more towards a positive outcome. The MACD, in the positive area and above [..]

Technical Analysis – USDCAD’s basic scenario is bearish, but eyes on nearby SMAs

Posted on July 3, 2020 at 7:35 am GMT

USDCAD bulls faded out near the descending trendline stretched from the top of 1.4667 in the last days of June, with the price slipping back to the 1.3500 zone. The downside correction, however, has not yet disturbed the short sequence of higher highs and higher lows started from the 1.3314 bottom. And should support around 1.3500 hold with the help of the 20- and 200-day simple moving averages (SMAs) in the same neighborhood, the pair may push harder to clear the [..]

Technical Analysis – GBPJPY finds obstacle at 100-day SMA; short-term outlook is bullish

Posted on July 3, 2020 at 7:26 am GMT

GBPJPY has found a strong resistance obstacle near the 38.2% Fibonacci retracement level of the up leg from 124.00 to 139.80 at 133.70, where the 20- and 100-day simple moving averages (SMAs) reside too. The recent rebound on the short-term ascending trend line drove the stochastic oscillator towards overbought conditions, suggesting a possible pullback in the market, however, the RSI is flattening near the 50-neutral threshold. To the upside, emanating pressure over the last couple of days has denied upside [..]

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