Gold (XAU/USD) declining, FTSE 100 (UK100) in falling wedge [Video]
|Did you catch this double top on Gold?
I’m Brad Alexander and in this week’s Market Blast Technicals let’s take a look at Brent Crude (UKOil), USDCAD, NZDUSD, the FTSE 100 (UK100), and Gold (XAUUSD).
Last week, Gold formed this double top which, depending on how you draw your trend lines, could be considered a head and shoulders pattern.
Regardless, it broke the neckline and price action has fallen into this demand zone so we will wait for a breakout either way.
The Stochastic Oscillator is clearly bearish but oversold so we will need to wait to see some direction here.
The Daily chart shows bearish price action with the bounce off the upper trend line and the Stochastic Oscillator still moving down.
Yesterday, we promised to take a look at the FTSE 100 as all stock indices were quite bearish.
We have, however, spotted this falling wedge on the 4-hour chart with the Stochastic Oscillator heading into oversold territory.
USD strength is continuing, as we noted yesterday.
NZDUSD has broken the key level of support that we noted yesterday but price action is trying to consolidate so we will monitor this.
Price action on USDCAD has reached a key level of resistance and has formed an Ascending Triangle.
The Stochastic Oscillator is very overbought but has been bullish for a few days now.
We will watch for a break either way.
Brent Crude has fallen again today but we could be getting ready for a reversal as we see the Stochastic Oscillator well into oversold territory.
However, beware as the story on the Daily chart is contrary with price action bouncing off the upper trend line and the Stochastic Oscillator crossing and moving down.
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