Looking through the chart comments below, it’s amazing how many bullish technical signals are popping up all over including bear traps, bullish key reversals, double bottoms, positive divergences, oversold RSI’s and more. The selloff of last week has retested a lot of prior lows which have more or less held suggesting recent trends may be near exhaustion and reversals beginning.
Asia Pacific Index Chart Signals
Australia 200 has regained 4,800 as it rallies up off of 4,700 with support moving up toward 4,820 and resistance appearing near 4,865 then 4,915.
Hong Kong 50 had an inside day Friday, consolidating in the 18,340 to 18,440 range after plunging to and bouncing off of 18,090 holding the 18,000 round number. A positive RSI divergence indicates downward pressure weakening. Next potential resistance in the 19,000 to 19,090 area.
India 50’s selloff is looking tired. Friday the index dipped down to 6,860 before bouncing back up to 7,000 finishing with a doji candle that suggests bulls and bears in balance. Oversold RSI indicates potential for a bounce. A break through 7,055 would signal the start of a new uptrend that could initially challenge 7,200.
Japan 225 dipped below 15,000 falling toward 14,815 before catching fire and zooming back up to the 15,410 to 15,490 range in a classic bullish key reversal and bear trap. RSI still oversold so further bounding possible with next resistance near 15,605, 15,800 and 16,000.
North American and European Index Chart Signals
US 30 is on the rebound having successfully retested its January low near 15,450 with a bounce off of 15,500 to complete a double bottom. The index has moved up into the 15,920 to 15,980 range approaching its first big resistance hurdle looming in the 16,000 to 16,030 area between a round number and Fibonacci level followed by 16,130.
US NDAQ 100 has regained 4,000 confirming a successful retest of the August low near 3,900 and the formation of a double bottom. RSI lifting up off of 30 and a positive divergence indicate downward momentum fading. Support rises toward 3,980 with next resistance possible near 4,050 then 4,080.
US SPX 500 is driving up out of a downtrend, rallying back up through 1,855 to confirm a bear trap reversal and double bottom near 1,815 which along with a positive RSI divergence suggests selling pressure has become exhausted. Next upside test looks possible near 1,880 then 1,910.
Germany 30 has bounced up off of 8,700 into the 8,950 to 8,990 range. Oversold RSI indicates potential for a bounce but it really needs to retake 9,000 to confirm an upturn with next potential resistance near 9,130.
UK 100 has retaken 5,600 and driven on into the 5,710 to 5,740 area a bullish engulfing day that indicates Thursday’s drop down to 5,500 was likely a selling climax. A positive RSI divergence indicates downward pressure weakening. Next resistance possible near 5,800.
Commodity Chart Signals
Gold has levelled off in the $1,233 to $1,245 range consolidating Thursday’s massive gains below potential resistance near $1,250 and the recent $1,264 peak. RSI remains way overbought so a big correction still possible that could retest the $1,200 round number and liftoff point.
Crude Oil WTI has bounced back above $26.60 in a big way rallying up to $29.30 for a 10% gain on the day before settling back toward the $28.50 to $28.90 area. The rally confirms a bear trap bottom and successful retest of the January low. A positive RSI divergence indicates downward pressure weakening. Next upside resistance near $27.30 then $29.00 and $30.00.
Copper appears to be building a head and shoulders base with a successful retest of $2.00 forming a right shoulder. The drop down to the head near $1.93 coincided with a positive RSI divergence. Neckline resistance appears near $2.12.
FX Chart Signals
US Dollar Index appears to be turning upward following up on Thursday’s doji candle and oversold RSI with a nice rebound. It still needs to retake 96.00 to signal an upturn with next resistance near 96.80 then 97.45 if successful.
EURUSD has drifted back into the $1.1235 to $1.1255 area near a Fibonacci level after encountering resistance near $1.1320. A sideways $1.1200 to $1.1305 channel appears to be emerging while the pair consolidates to work off an overbought RSI.
NZDUSD ran into resistance near the top of a $0.6560 to $0.6730 channel and has dropped back toward $0.6620. RSI holding 50 to keep uptrend intact but momentum stalling for now as it moves into a consolidation phase.
AUDUSD is stuck in neutral at the moment with the pair sitting on its 50-day average near the middle of a $0.7000 to $0.7200 trading channel confirmed by the RSI sitting on 50.
USDCNH is breaking down again, taking out 6.5325 a Fibonacci level and driving down to test the 6.5000 round number with next potential support near 6.4705 a 50% retracement of the previous uptrend. RSI under 50 and falling confirms downward momentum accelerating.
USDJPY continues to rebound with support rising toward 112.40 from 111.00 and the pair advancing into the 113.20 to 113.60 area. Oversold RSI suggests potential for additional bounces with next potential resistance near 114.20.
EURJPY is coming off an inside day that saw ti trade between 127.00 and 127.60 following a brief bear trap dip below 126.20 that appears to have completed a double bottom. A positive RSI divergence indicates downward pressure weakening. Next rebound resistance possible near 128.00 then 129.00 and 130.00.
CADJPY successfully retested 79.15 and regained 80.00 completing a double bottom and has rallied up into the 81.70 to 82.10 area with next potential resistance near 82.45 a 23% retracement of its previous downtrend then 83.40.
USDSGD is retesting $1.4000 resistance having dipped briefly below its 200-day average near $1.3910 in what may be a bear trap bottom. On a breakout next potential resistance appears near $1.4065 then $1.4100.