Traders should be alert for a breakout in Russell 2000 futures which are coiling in yet another triangle pattern. Having entered from below and with three consecutive higher closes, it feels like if there’s going to be a breakout, it’s most likely going to be bullish. Momentum indicators are pushing higher, bolstering that view.
If we see triangle resistance...
The price of oil may attempt to retrace the decline from the last week’s high ($72.40) as it initiates a series of higher highs and lows.
Crude Oil Price Outlook
Keep in mind, the price of oil bounced back the January low ($64.37) to hold within the yearly range, and a break/close above $70.50 (61.8% Fibonacci retracement) may push crude back towards $72.80...
Gold held below a key resistance pivot into the close last week at 2643/71 - a region defined by the 100% extension of the 2015 advance, the 1.618% extension of the June advance, and a host of short & long-term slope considerations. Bottom line- looking for a possible inflection off this mark into the start of the month with the immediate rally vulnerable while...
The British Pound is testing Fibonacci resistance for a fifth consecutive-day at the 78.6% retracement of the 2021 decline at 1.3414 - looking for a breakout of this multi-day consolidation for guidance here with the immediate rally vulnerable while below.
A topside breach exposes the 2019 high at 1.3515 and the 1.36 -handle. Initial support rests with the...
Gold was a touch lower at the time of writing. Earlier gains that were triggered by geopolitical tensions in the Middle East and risk-on moves in China last week. But the impact of those factors have faded.
Price action since Friday suggests that gold is approaching a potential short-term correction phase after its recent rally.
Overbought conditions indicated...
EUR/USD is capitalizing on the weaker USD and with German CPI data in focus.
Buyers have been grinding higher from later May, with the latest leg up seeing EUR/USD retest 1.12.
Buyers will look to rise above here to extend the uptrend to 1.1275 the 2023 high.
On the downside, support can be seen at 1.11, the round number and the rising trendline support. It would...
Nikkei 225 futures look terrible on the dailies, with a shooting star candle followed up by a big bearish candle on Friday, completing an evening star pattern. Convention suggests downside risks are building, but I’m not going to follow convention today.
Sitting just above the 50-day moving average, a decent long setup has presented itself, especially with...
Gold could be approaching a correction, with signs of overbought conditions emerging. The Relative Strength Index (RSI) is flashing above 70 on daily, weekly, and even monthly scales, a level not seen since the 2020 pandemic surge. Historically, this has indicated either a multi-day consolidation or a period of selling pressure as investors take profits.
Despite...
Getting your entries right is a big step forward on the path to successful trading. In this post, we’re going over three techniques to potentially improve your entry point and, by extension, hopefully get in trades at more favorable price levels that could ultimately increase your profit per trade.
1. Planning For Breakouts (Or Breakdowns)
Use pullbacks and...
Crude oil is one of the few commodities that hasn’t participated in the broader rally this week, weighed down by a report on Thursday that Saudi Arabia will sacrifice higher prices to protect market share.
Even before the report dropped there were signals crude was staring at downside, with a key reversal on Wednesday setting the tone. The gains crude took weeks...
Like the Aussie post looked at earlier, this isn't a terrible venue if looking for continued USD-weakness. Tomorrow's Core PCE report is a big deal as this is the first piece of inflation data that we'll see after the Fed's 50 bp cut, and at this point rates markets have high expectations for even more softening and this will be spoken to with tomorrow's inflation...
If looking for USD-weakness to continue through tomorrow's Core PCE report, AUD/USD can remain a viable venue, along with GBP/USD.
The pair had a stark pullback yesterday but support showed at a key Fibonacci level plotted at .6824. That was resistance just last week and, so far, it's substantiated a bounce back up to the .6900 handle. That's also the level...
A revival of AI optimism following Micron Technologies strong guidance, combined with additional Chinese stimulus and the prospects of a 50 basis point cut in November, means the path higher is of least resistance,
The Nasdaq 100 has extended its breakout from the symmetrical triangle pattern, rising above 20k and reaching fresh 6-week highs. Buyers will now set...
GBP/USD rises amid a risk on market mood after more Chinese stimulus and ahead of ed Chair Powell's speech later today.
GBP/USD trades above a rising trendline dating back to 2022. More recently, the price has been trending higher since the end of April, forming a series of higher highs and higher lows.
The price ran into resistance at 1.34 and has corrected...
EUR/USD sits in a rising wedge pattern with the price now testing support. With momentum indicators such as MACD and RSI (14) threatening to rollover, traders should be on alert for a potential downside break.
If we get one, you could sell with a tight stop above 1.1140 targeting a move down to 1.1075 or 1.1045.
While we are nearing quarter-end where price...
USD/MXN appears to be bouncing back ahead of the 50-Day SMA (19.1627) as it climbs to a fresh weekly high (19.6849).
In turn, USD/MXN may track the positive slope in the moving average as it continues to hold above the indicator, with a break/close above the 19.8990 (38.2% Fibonacci retracement) to 20.0900 (100% Fibonacci extension) zone bringing the yearly high...
The EUR/USD couldn't hold onto its earlier gains and has turned negative on the day, potentially creating a bearish signal. Its recent gains have been driven more by external factors, such as China’s efforts to stimulate its economy and weaker US data, rather than positive developments within the Eurozone. However, the Eurozone's economic data, particularly from...
It's been a strong run in Cable since the 1.3000 test two weeks ago, with the pair tacking on more than 400 pips, trough-to-peak. That run also produced another overbought RSI reading on the daily chart of GBP/USD which would be the fourth such instance this year. Each of those prior events have led-in to pullback and, so far this morning, that's what we're...
