Technical Analysis / Page 136

Technical Analysis – Will the US 100 index come under profit-taking pressure?

Posted on June 1, 2023 at 2:19 pm GMT

The US 100 stock index (cash) opened June’s trading session on a neutral note, though the formation of a bearish doji at the top of the uptrend keeps feeding speculation that the latest remarkable rally has probably peaked. The RSI and the stochastic oscillator are witnessing overbought conditions. Yet, with the former standing above 70 and the latter preserving a horizontal trajectory around 80, upside pressures could last a bit longer, especially if the 14,215 nearby support area stands firm. In the event the price heads lower, [..]

Technical Analysis – Gold rotates near key support trendline

Posted on June 1, 2023 at 12:34 pm GMT

Gold changed direction to the upside in the four-hour chart after securing another strong foothold around 1,938 and near the ascending trendline drawn from November 2022. The precious metal rose as high as 1,974 before giving up some ground, though there is potential for another test near that peak as the RSI and the MACD have not exited the bullish area yet. Nevertheless, some caution is warranted given the sideways trajectory in the aforementioned indicators and the negative slope in the stochastic oscillator. A [..]

Technical Analysis – WTI oil futures pick up negative vibes

Posted on June 1, 2023 at 9:33 am GMT

WTI oil futures registered their largest monthly decline since November 2021 in May, closing marginally below the 68.35 base, which had been acting as a buffer to downside movements since mid-March. The price is currently struggling to climb back above that threshold of 68.35, with the technical indicators reducing the odds for a significant bullish breakout. The RSI has resumed its negative momentum, falling back into the bearish zone. Likewise, the MACD has slipped below its red signal line and the [..]

Technical Analysis – AUDUSD escapes bearish breakdown but bias weak

Posted on June 1, 2023 at 7:34 am GMT

AUDUSD bounced back above the nearby 0.6483 base, which has been buffering selling forces since the start of May, after a flash spike to a new six-month low of 0.6457 on Wednesday. The rebound in the stochastic oscillator promotes an upside breakout or some stabilization, though stronger bullish signals are required to boost market sentiment. Moreover, the RSI is comfortably below its 50 neutral mark and the MACD remains negatively charged below its red signal line, both suggesting sellers have not abandoned their efforts [..]

Technical Analysis – Bearish breakout in NZDUSD; will it last?

Posted on June 1, 2023 at 7:29 am GMT

NZDUSD has finally managed to break below the rectangle that has been dictating the price action since February 2023, as NZD bears continue to recover part of the losses they have been suffering by the rally that commenced on October 13, 2022. However, the downside breakout has not been impressive as NZD bulls appear determined to halt this correction. Having said that NZD bears probably feel in control of the market. The Average Directional Movement Index (ADX) is edging higher, signaling [..]

Technical Analysis – Has Nvidia’s rocket rally peaked?

Posted on May 31, 2023 at 2:54 pm GMT

Nvidia stock skyrocketed to a record high of 418.59, cashing in on the Artificial Intelligence frenzy and making the company the first chipmaker company to hit a $1 trillion valuation. The stock’s price has almost quadrupled since October’s low of 107.90 and some profit taking could be possible after the extraordinary rally. The formation of a bearish shooting star candlestick flags a reversal to the downside, though traders will wait to see what the next candlestick will be. If the stock gaps [..]

Technical Analysis – EURGBP back in bearish mode

Posted on May 31, 2023 at 10:43 am GMT

EURGBP resumed its bearish direction after a short period of trading sideways, falling to a new five-month low of 0.8624 on Wednesday. Market sentiment weakened following the rejection near the 20-day simple moving average (SMA) and there might be more selling activity in the short term given the negative trajectory in the momentum indicators. Still, with the price trading near the lower Bollinger band at 0.8630 and the RSI testing its 2022-2023 lows, a pause in the ongoing bearish action or an [..]

Technical Analysis – USDJPY looks overbought but still supported

Posted on May 31, 2023 at 8:16 am GMT

USDJPY came under weak selling pressure after peaking at a six-month high of 140.91 on Monday, with the pair set to close in negative territory for the first time in three weeks. The RSI and the stochastic oscillator are warning that the bulls are running out of fuel as the indicators are changing direction below their overbought levels. That said, traders may not engage in additional selling activities, unless the current support area around the 50% Fibonacci retracement level of the 151.93-127.21 [..]

Technical Analysis – JP225 cash index correction could morph into a bearish trend

Posted on May 31, 2023 at 7:51 am GMT

The JP225 cash index is on a streak of downward moves, dropping from the all-time high of 31,664 and it is currently a tad above the 30,711 level. This correction was not unexpected considering the aggressive nature of the recent upleg. However, the momentum indicators might point to a stronger downwards move, and not just a short-term correction. The Average Directional Movement Index (ADX) is edging lower from its highest peak since the September 2021 rally. Usually, a drop from [..]

Technical Analysis – Apple stock opens with positive gap, eyeing all-time highs

Posted on May 30, 2023 at 2:38 pm GMT

Apple’s stock has been in a steep uptrend since late December, generating a structure of higher highs and higher lows. In today’s session, the stock had a gap up opening, jumping to its highest levels since March 2022 and battling with its upper Bollinger band. The momentum indicators currently suggest that bullish pressures are intensifying. Specifically, the stochastic oscillator is ascending after posting a bullish cross, while the RSI is approaching its 70-overbought zone. Should the rally resume, the March 2022 peak [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

How can we help?

Live Chat Terms

How to Access

Telegram Chat Terms

Technical Analysis