Here is today’s wrap and chart signals
Index Chart Signals
US 30: The short term uptrend remains intact. Daily candles continue to make higher lows and higher highs while price has moved beyond the potential trend line drawn across the peaks of 19 May and 23 June, negating that as resistance. No sign yet of a pull back for those waiting for an opportunity to buy into this trend. Next potential resistance is around 18,170/18,190 represented by the 23 June peak and 78.6% Fibonacci retracement of the whole move down from 19 May. The RSI is above 50% but is still tracking sideways indicating that momentum has slowed from the very strong gains earlier in the week. The 200 day moving average provides potential support around 17,755.
Germany 30: The uptrend remains intact on the daily chart. Upward momentum has recovered after a brief drift as indicated by yesterday’s price gap and the RSI again pointing higher. Today’s candle stopped around the 61.8% Fibonacci retracement at 11,731.IF we move lower to fill yesterday’s gap, this would look like a turning point for to start a downward correction. Otherwise, the 27 May peak and 78.6% retracement level provide the next potential resistance levels around 11,927/12,024. Peaks and lows from earlier in the week on the hourly chart provide potential support around 11,500
Australia 200: The daily trend remains up. The RSI continues to track higher above 50% indicating ongoing upward momentum. Price is now close to the next possible resistance zone around 5690/5710.This is represented by the 24 June peak at 5705 and 50% retracement of the whole move lower from late April. The peak between the double bottom pattern and the 200 day moving average provide potential support around 5590/5610.
Hong Kong H Shares: The short term downtrend continues. The 61.8% Fibonacci retracement at 11,237 and the 78.6% at 11.005 may be levels to watch as potential turning points to end the current correction lower.. The previous low at 10,711 represents support and a break below that would see resumption of the big picture downtrend. Monday’s high and the 200 day moving average now represent initial resistance to the upside around 12,089/12,160.
Forex Chart Signals
AUDUSD Daily candles are making lower highs and lower lows confirming a short term downtrend. However, momentum is low with the 14 period RSI continuing to track a little higher out of the oversold zone creating divergence. The area around .7325/.7285 may be a potential turning point. This sees the intersection of a downward sloping tend line and an AB = CD pattern. Recent peaks around .7490 represent potential resistance.
EURUSD: The daily candles are still making lower lows and lower highs meaning the short term trend is down. The RSI is also heading lower below 50% indicating potential for lower prices. Price moved straight through the possible support of last week’s low at 1.0916. The next possible support could be the late May low at 1.0819 and an AB=CD level just below that at 1.0777. Given current downward momentum the 78.6% Fibonacci retracement and ABx 127% = CD level around 1.067/1.061 shown on the chart below looks well in sight. Last Friday’s high and the 50 day moving average provide resistance around 1.1150/1.1216
Commodity Chart Signals
Crude Oil WTI: The downtrend continues setting up for a potential test of support at recent lows and an AB=CD pattern around $50.44. Below that the ABx127% = CD level around $49.75 provides another possible short term turning point. A possible downward sloping trend line provides potential resistance around $53 and above that, last week’s high at $53.75.
Gold: Gold continues in a short term downtrend in the daily time frame The RSI continues to track lower indicating downward momentum but is approaching the oversold zone. Last night’s low held potential support of the March low at 1143. However, daily candles would need to show signs of a trend change by moving past yesterday’s high at $1149.60 to indicate that this support is being rejected. Below here there is potential support from an AB=CD pattern around 1135.6. The last major low on the daily chart provides potential resistance around $1151. In the big picture, a decline to potential wedge support around $1090 looks possible over the medium term.