Before diving into Fibonacci theory, let's first answer the question, "Who is Fibonacci?" After all, knowing the history will give you the background you need to understand how this trading theory is rooted in mathematics and history. Leonardo Pisano, better known as Leonardo Fibonacci, was a European mathematician in the Middle Ages. He wrote Liber Abaci (Book of...
Chart Analysis:
The USD/CAD pair continues to trade within a defined consolidation box, reflecting indecision and range-bound behavior.
1️⃣ Consolidation Box:
The pair has failed to decisively break above the upper boundary near 1.4460 or below the lower boundary around 1.4280.
This range-bound behavior suggests that traders remain uncertain about the next...
Chart Analysis:
Amazon's price action showcases a breakout from a consolidation channel (green shaded area), confirming the resumption of its broader uptrend.
1️⃣ Rising Trendline Support (Blue):
The price continues to respect the ascending trendline originating from September 2024 lows.
This trendline acts as a dynamic support zone, reinforcing the bullish...
Chart Analysis:
Apple's stock price has broken below a long-standing ascending channel, signaling a potential shift in its bullish structure.
1️⃣ Ascending Channel (Green Shaded Area):
Price has decisively broken below the lower boundary of the channel.
This breakdown suggests increasing bearish pressure, especially as the price approaches key support...
"We will drill, baby, drill"
That's what Donald Trump said yesterday and is what makes me think oil is headed lower in longer-term outlook, or at best upside should be limited in long-term.
In short-term a lot can happen of course, but right now the path of least resistance appears to be to the downside.
WTI has been trending lower in the last few days and...
The EURUSD chart is consolidating near a potential reversal point, supported by the Relative Strength Index (RSI), which has rebounded from oversold levels seen in 2023. The 1.0170 level serves as a critical point for the EURUSD’s downtrend from September 2024 to January 2025.
Upside Potential:
If the euro holds above this level, it could climb toward 1.0520,...
Gold is peeking above resistance at $2725, extending the bullish trend in place since late December.
If it can push above this level and preferably close there, it creates a decent bullish setup, allowing for longs to be established above with a tight stop beneath for protection.
The obvious target would be the record high of $2790 set in late October....
The slight surge in confidence driven by the rise of cryptocurrencies $Trump and $Melania pushed Bitcoin’s price up by more than 5% to a new high of $109K . However, the volatility caused by Trump’s inauguration day has pulled the price back to the barrier of $105K in the short term.
Short-Term Sideways Range
A consistent sideways range continues to form...
The Dow Jones Industrial Average (DJIA) has rebounded into its up-trending parallel channel, established between May and December 2024. The latest dip outside the channel retested the November 2024 low at 41,739 before climbing back above the 43,000-barrier. Bullish momentum faces a test with Trump's return and upcoming Q4 earnings reports.
Fibonacci...
The dominance of the US dollar, driven by expectations of a high interest rate (4.5%) from the Federal Reserve as the annual CPI (2.9%) remains far from the 2% target , has weakened the Australian dollar in the short term. The AUD/USD has lost 11% of its value since late September 2024, and for now, neutrality has taken over the market as the next Federal...
Over the past two sessions, the price of crude oil has dropped more than 2%. This decline coincides with the Israeli Prime Minister reaching a ceasefire agreement in Gaza. The temporary peace deal has been perceived as favorable for oil production, as it eliminates a geopolitical conflict that could have disrupted operations in the Middle East. As a result,...
Iron ore futures have seen a decent rally over the past fortnight, rebounding from below $100 a tonne on strong volumes to take out downtrend resistance dating back to early December before going on with the move.
The price is now testing a zone that includes minor horizontal resistance at $102.25 and downtrend established in October when Chinese markets were...
What Are Pivot Points?
Pivot points are a popular technical indicator used by traders to help them predict significant areas in the market, such as potential support and resistance levels. These points are calculated by averaging the high, low, and closing prices of a previous period (which could be a day, a week, or a month) to establish possible trading zones...
Along with other yen crosses, the CAD/JPY has been printing bearish price action this week amid rising expectations that the BoJ will tighten its belt next week.
The narrowing of yield differential between Japan and those of the rest of the world have helped to put some downward pressure on the al JPY pairs.
Having broken the 108.55-108.90 support area (shaded...
Bitcoin futures are threatening to break out of the falling wedge established in early December, testing resistance during Asian trade.
With RSI (14) through its downtrend and MACD set to cross over from below imminently, momentum is swinging in favour of the bulls, bolster the case for upside.
If we see a clean downtrend break, longs could be established with...
Euro has responded to confluent downtrend support this week with EUR/USD poised to snap a six-week losing streak.
The immediate focus is on a breakout of the January opening-range (1.02-1.0448) range for guidance with the broader short-bias vulnerable while above parallel support.
Bottom line: rallies would need to be capped by 1.06 IF price is heading lower...
Apple's stock has experienced a decline of over 9% from its peak price of $260 , recorded during the last days of December. The stock has seen a reduction in market confidence, with selling positions now dominating.
Crucial Barrier: The current $234 zone serves as a critical support level, where the upward trendline, the 100-period moving average, and the...
The GBP/JPY is displaying a bearish engulfing candle on its daily chart - and similar patterns are observed on all other major yen pairs.
The GBP/JPY outlook has turned bearish as the Japanese yen gains strength amidst falling global bond yields, driven by softer-than-expected US and UK inflation data. Markets have shifted Fed rate-cut expectations forward,...
