Gold skirts the Upper Bollinger Channel band and trades very close to the 1295 resistance level. Divergence is not evident on the RSI and stochastics point higher not really in an overbought condition. Should 1295 resistance be taken out, we could expect further gains as we can see buying pressure mount in the market. Unable to break would suggest a return to the trading range with first support at 1283.
Upper Bollinger band has been breached as stochastics begin turning to point lower from an overbought condition. More significant is the triple top identified which gives a bearish bias. All together, these indicators suggest weakness once the 1.3267 support gives way.
Upper Bollinger channel band holds the rally as the EURUSD battles the positive move. Resistance at 1.1900 while stochastics point higher rising to an extreme overbought condition. RSI divergence not evident. Double (triple) top formation keeps bias BEARISH.
The 50% Fibonacci significant support at 111.04 has halted the slide with a DOJI bar, signifying indecision, forming on the support level which generally suggests a turnaround from the recent directional move. Stochastics point lower in an oversold condition but the lower Bollinger band has been breached. Above 111.04 suggests that we can see a bounce higher as the correction which began from the bearish Triple Top may be over. Below 111.04 opens the way for a test of 110.00 support.
Resistance at 8922 halts the rally as we see a rejection of higher prices as the sellers come in. The cross is range trading in a sideways pattern with the larger range between 8984 – 8746 and the smaller range between 8922 and 8863 – With no breakout, Bias is neutral.
CL-JAN18 - Jan Crude Oil
Strong rally persists breaking new highs not seen for over two years. Oil tests the Upper Bollinger Channel Band as stochastics begin to turn in an extreme overbought condition together with divergence evident on the RSI. All this suggests that we can see a correction lower so even with the clear uptrend, a dip lower should be expected targeting 5640 levels.