Technical Analysis / Page 100

Technical Analysis – Could today’s green candle in the UK 100 cash index have legs?

Posted on August 22, 2023 at 1:45 pm GMT

The UK 100 cash index is finally recording a green candle today after seven consecutive red candles that pushed it towards the 7,200 region. It tested the March 20, 2023 low at 7,205 for the second time, but the bears proved powerless to record a new 2023 low, opening the door to the current rebound. Despite the Average Directional Movement Index (ADX) trading a tad below the early-June high and signaling a strong bearish trend in the market, the remaining [..]

Technical Analysis – Taiwan semiconductor meets familiar support area

Posted on August 22, 2023 at 10:07 am GMT

Taiwan semiconductor’ stock (TSMC) turned upwards after hitting its 200-day simple moving average (SMA) at 89.45 last Friday, looking to repeat May’s bullish pattern. The market seems to have reached oversold conditions as the stochastic oscillator and the RSI are now pushing for an upside reversal above 20 and 30 respectively. Monday’s close above the descending trendline is good news for the rebound, but it could be short-lived if the bulls are rejected at 95.20. In the event the price [..]

Technical Analysis – EURGBP trades sideways but the bears still eye a new 2023 low

Posted on August 22, 2023 at 9:40 am GMT

EURGBP is trading sideways today, not far from the recent July 11, 2023 low of 0.8503. The bears are actually trying to take advantage of the head-and-shoulders pattern and achieve at least a drop towards the 0.8500 area, with the full-height pattern target being in the 0.8400 region. The momentum indicators appear to be fully supportive of the bears’ intentions. The Average Directional Movement Index (ADX) has risen above its 25-threshold, signaling a decent bearish trend in the market, and the RSI seems [..]

Technical Analysis – EURJPY consolidates as bulls fear intervention

Posted on August 22, 2023 at 7:48 am GMT

EURJPY has been in a prolonged uptrend since the beginning of the year, posting consecutive multi-year highs. However, in the last week, the pair has been flat near 15-year peaks, with buyers struggling to push the price higher on fears of an impending intervention by Japanese authorities. The momentum indicators currently suggest that bullish forces are reigning supreme. Specifically, the MACD is strengthening above zero and its red signal line, while the RSI is ticking up deep within its positive [..]

Technical Analysis – GBPUSD shows bullish attitude

Posted on August 22, 2023 at 7:10 am GMT

GBPUSD has been gradually rising since posting a double bounce near the 1.2615 area, exiting the one-month-old bearish channel recently. The pair opened above the constraining 20-day simple moving average (SMA) on Tuesday and is currently trying to extend its upleg above the 50-day SMA at 1.2790. This area provided strong resistance earlier this month, while the broken support trendline from October 2022 could add another potential threat within a short distance. Note that the 23.6% Fibonacci retracement of the [..]

Technical Analysis – US 30 cash index correction at tipping point

Posted on August 22, 2023 at 6:58 am GMT

The US 30 cash index has been under bearish pressure after registering a new 2023 high and its highest print since April 2022. It is trading sideways today, testing the support set by the October 13, 2022 upward sloping trendline. The previous three times this trendline was tested, the bears failed to record a decisive sell-off, geometrically increasing its importance. The momentum indicators remain mostly supportive of the current downleg. More specifically, the RSI has reached its lowest point since the [..]

Technical Analysis – GBPAUD remains overbought near 40-month highs

Posted on August 21, 2023 at 3:48 pm GMT

GBPAUD has eased slightly from last Thursday’s 40-month high of 1.9968 as the positive momentum has started to lose steam somewhat. For the moment, the RSI and stochastic oscillator are holding in the overbought region. The former has flatlined just above 70, however, for the latter, the fast moving %K line has crossed below the slow moving %D line, signalling a possible pullback. Should the downside pressures intensify, the pair could initially retreat towards 1.9550, which has previously acted as [..]

Technical Analysis – US 500 index bounces off 23.6% Fibonacci

Posted on August 21, 2023 at 12:54 pm GMT

The US 500 stock index (cash) has been in a steady decline since its peak at the 16-month high of 4,606 on July 27. However, the price seems to be temporarily halting its retreat after encountering strong support near 4,342, which is the 23.6% Fibonacci retracement of the 3,486-4,606 upleg. Despite the latest bounce, the short-term oscillators continue to reflect downside risks. Specifically, the MACD is extending its decline below both zero and its red signal line at its lowest levels since [..]

Technical Analysis – EURCHF bulls could finally see light at the end of the tunnel

Posted on August 21, 2023 at 9:53 am GMT

EURCHF is edging higher today as the bulls are trying to put a stop to the continued downside pressure. The bears failed to record a lower low, below the July 27, 2023 low of 0.9521, and instead a bullish structure of double bottoms appears to have formed. A move above the 0.9648 neckline is needed for this pattern to become valid. In the meantime, the momentum indicators appear mostly directionless at this stage. More specifically, the Average Directional Movement Index (ADX) has [..]

Technical Analysis – EURUSD turns up; short-term outlook still cloudy

Posted on August 21, 2023 at 9:52 am GMT

EURUSD opened moderately higher on Monday after almost touching the 1.0830 support area, which sparked the exciting rally to a 17-month high of 1.1275 last month. The pair experienced five negative weeks in a row, retreating below the trendline that connects the lows from September 2022 and below its 20- and 50-day exponential moving averages (EMAs). The recent small red candlesticks and an oversold stochastic oscillator suggest that selling pressure is dwindling. Also, the price bounced off the lower Bollinger band last [..]

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