Technical Analysis Center

Gold Daily Chart 07/21


During my last analysis of Gold daily chart I specified 1310.00 to be the first area of support and its importance to be defended by long term buyers. Last night that exact level was reached and a substantial bounce was provided.  At this stage the main area of resistance is 1337.00. We need to break that level in order to reverse this short term down move into a new up trend. If the buyers can achieve that, my next upside target is 1360.00. Since 1310.00 did hold very strongly, it is now THE MAIN area of support and Must be defended by the buyers at all cost. Any break below 1310.00 could create a significant drop towards 1290.00 and ultimately 1260.00

Gold Daily Chart 07/12


In the very short term, Gold has reached it upside objective of 1380.00 and is undergoing a phase of profit taking. If you calculate the last leg up from 1200 to 1320 (120 points) and project that length from 1260.00 low, you get exactly 1380.00. The overall trend is still up as indicated by the main trend line. First area of support comes in at 1310-1300 area. It is very critical the buyers defend that price zone, because if broken we could see a sharp drop towards 1260.00 and retrace entirely that huge green candle up.

E-mini S&P futures closed at the very low of the day confirming the weakness seen from the previous day session. However we are entering into very short term oversold territory and a dynamic bounce could be initiated at any time. The first level of resistance market has to overcome is 1997.00. Till that level is no breached to the upside we may either rotate within 1980 to 1997, or continue this directional down move towards 1950.00.

Daily Chart Analysis ES (S&P E-mini futures)


After Brexit sharp drop, market has turned severely to the upside. The reversal is a combination of massive central banks intervention and surprised short covering rally. In addition Brexit uncertainty has eliminated any possibility of near future rate hikes by the FED, therefore forcing more capital to enter the market in search of higher returns. The first level of resistance market has to overcome is 2110.00. If we manage to break that level, it’s perfectly possible price will go challenge the upper band of the existing bullish channel at 2200.00. On the other hand if we fail reaching or breaking 2110.00, a retracement against this current up move is in play down to 2050.00. Looking at the last 3 daily candles, we can notice the range of each candle is shrinking as we are approaching major area of resistance. A shrinkage of range at major resistance levels is often sign of market exhaustion and possible reversal. For anything bearish to happen we need to break below 2075.00. Till then we will be looking for this move to continue up and we will be monitoring price action past 2100.00

Crude Oil Daily Chart 07/07


Crude oil experienced a confirmed break of its main trend line up while backed by a short term trend line down. When a trend line up is broken with the presence of an established short term trend line down, the break becomes more significant than otherwise. The fact price closed at the very low of the session and far away from the break point makes this a very successful break. As with most break, we still can have one more retest of the broken up trend line around 47.30 47.50 and then full blown drop to first 44.10 and 38.15.  For this bearish situation to be entirely reversed, price will have to trade back above 48.50.

S&P 500 Futures Daily chart 07/11


S&P Futures daily chart still looking very strong. We have just initiated a break out of a 3 days consolidation and in process to start the second leg up also called wave 3. Based on current measurements, upside objective is near 2200.00. For anything bearish to start we need to break below 2100.00 decisively. Till  then any pull backs will be considered as normal retracements against an established uptrend. Our 2 main supports are 2120.00 and 2110.00. Despite the overly bullish condition of this market, we are entering extremely over extended territories and a very dynamic pull back could surprise all buyers.

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