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Chart Signals: Capital returns to stocks and resource markets

The recovery in stocks that started yesterday accelerated today with the UK 100 posting particularly strong gains and giving Asia Pacific indices lots of room to catch up. GBP also continues to recover while JPY gives back some of its recent gains.

Asia Pacific Indices

Australia 200 continues to recover, climbing up from near 5,115 through 5,185 a Fibonacci level and on toward 5,205 with next potential resistance near 5,245 then 5,330.

Japan 225 has broken out over 15,555 a Fibonacci level to signal the start of a new recovery trend driving into the 15,670 to 15,760 area with next potential resistance in the 15,930 to 16,050 area which contains a Fibonacci cluster and round number.

Hong Kong 50 cleared 20,210 confirming a previous breakout over 20,000 and signalling the start of  new upswing along with RSI retaking 50. The index has rallied into the 20,550 to 20,650 area with next potential resistance near 20,710 then the 21,000 round number.

North American and European Indices

US 30 cleared 17,400 to confirm the start of a recovery trend than took off, rallying up into the 17,620 to 17,680 area with next potential resistance near 17,750 and tis 50-day average. RSI testing 50 suggests confirmation of an upturn pending.

US NDAQ 100 regained 4,300 a former breakdown point to call off the recent selloff and signal the start of a rebound then drove up through 4,345 a Fibonacci level which may become higher support then advanced on 4,370 with next potential resistance near 4,500 a  round number and Fibonacci test.

US SPX 500 continues its rally up off 2,000 round number support driving up from 2,040 toward 2,052 and then the 2.062 to 2,070 area with next potential resistance at the 50-day average near 2,075 then 2,100. RSI at 50 indicates confirmation of an upturn pending.

UK 100 soared Wednesday rallying up off its 50-day average near 6,200, blasting through 6,300 and driving on toward the 6,335 to 6,370 area with next potential resistance near 6,450 its 2016 high. RSI back above 50 confirms momentum turning increasingly upward.

Germany 30 continues to rebound, advancing into the 9,590 to 9,640 area from 9,500 round number support. RSI confirms downward pressure fading and an upturn pending. Next potential resistance near 9,715 the bottom of a gap.


Gold successfully retested $1,304 support yesterday and has bounced back into the $1,322 to $1,327 area. RSI rolling over suggests upward momentum levelling off.

Crude Oil WTI stormed higher Thursday within its $45.00top $50.00 trading channel driving up through its 50-day average near $47.00 and $48.10 a Fibonacci level then on toward $49.50. RSI clearing 50 confirms the start of a new upswing.


US Dollar Index has dropped back under 96.00 from 96.55 falling toward 95.80 which signals a downturn starting. RSI confirms momentum rolling over. Next potential support near 95.45 then 95.00 in a pullback.

EURUSD’s rebound has levelled off around the 200-day average near $1.1100 so far with the pair trading in the $1.1090 to $1.1120 range. RSI suggests downward pressure easing and a sideways trend reasserting itself. Next resistance on a breakout possible near $1.1200.

GBPUSD continues to build a base and work off an oversold RSI in the $1.3100 to $1.3500 zone, recently advancing from $1.3370 toward $1.3530 before dropping back toward $1.3430 in normal backing and filling. Next potential resistance on a breakout at the February low near $1.3840.

NZDUSD remains under accumulation with support rising from near $0.7050 toward $0.7100 while RSI holding 50 confirms underlying upward momentum intact. The pair has advanced on $0.7120 with next resistance possible near $0.7195 a Fibonacci test.

AUDUSD has regained $0.7400 and its 50-day average to signal the start of another upswing. The pair has advanced on $0.7440 with next potential resistance at the $0.7500 round number then $0.7600. RSI confirms underlying uptrend intact.

USDSGD fond some support near $1.3450 and has bounced back to retest the $1.3500 round number as new resistance following a breakdown. RSI falling back under 50 confirms momentum turning downward with next support near $1.3400.

USDJPY is still base building in the 101.50 to 103.00 range recently trading near 102.50 with next potential resistance on a breakout possible near 104.00. RSI suggests downward pressure starting to ease.

GBPJPY continues to recover, building on its retaking of 135.00 and advancing from near 137.30 toward 138.90 with next potential resistance near the 140.00 round number. RSI back above 30 from oversold signals an upswing starting.

EURJPY is steadily recovering as downward pressure weakens. Support moves up toward 112.80 with the pair trading near 113.90 and next resistance possible near the 115.00 round number.

CADJPY is retesting 79.30 a previous support level which may either confirm or call off the recent breakdown. Next resistance near the 80.00 round number with support moving up toward 78.40.

USDCAD has turned downward once again with the pair drifting back under the $1.3000 round number and Fibonacci level toward $1.2980 with resistance falling toward $1.3030 from $1.3100. Next potential support at the 50-day average near $1.2880.

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