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Chart Signals: Gold breaks out as indices break down

Chart Signals: Gold breaks out as indices break down

Capital appears to be rotating back into defensive sectors with gold and JPY breaking out to wrap up last week. Meanwhile, indices across all trading regions have started to roll over again with the exception of Australia, the UK and Canada which have been getting some support from rallying mining and energy stocks.

Asia Pacific indices

Australia 200 is holding steady in the 5,165 to 5,825 recently trading near 5,250 as it consolidates recent gains with initial support in place near 5,230.

Hong Kong 50 is breaking down, falling under 21,000 and sliding on toward 20,880 with next potential support near 20,705 a Fibonacci level and trend support. RSI falling under 50 signals momentum turning downward

India 50 continues to fall away from 8,000 dropping into the 7,790 to 7,890 range with next support possible near 7,750. RSI falling toward 50 indicates trading correction deepening.

Japan 225 appears to be stabilizing in the 15,850 to 15,930 range after plunging down under 16,000 for now but with JPY still rising and RSI under 50 indicating downward pressure also increasing, a retest of the April low near 15,325 remains possible.

North American and European Indices

US 30 has dropped back toward 17,660 falling away from 18,000 before regaining its footing and rebounding toward 17,820. Next upside resistance near 17,890. RSI indicates upward momentum fading and a downturn pending with next potential support at the 50-day average near 17,430.

US NDAQ 100 is breaking down, taking out its 50 and 200-day averages near 4,400 and sliding toward 4,315 with resistance falling toward 4,345 a Fibonacci level. Next support possible near 4,280 then 4,225. RSI under 50 and falling indicates downward pressure increasing.

US SPX 500 is breaking down taking out 2,070 which has become new resistance and falling toward 2,060 a Fibonacci level with next potential support near 2,054 then 2,040. RSI falling under 590 confirms momentum turning downward.

UK 100 continues to hold above its 50 and 200-day averages near 3,200 where a golden cross is pending. Recently trading in the 6,235 to 6,270 area with next potential resistance near 6,340 then 6,425.

Germany 30 keeps slowly backsliding, dropping into the 10,040 to 10,100 area from 10,330 with next support possible near 10,090 then 9,910. RSI falling under 50 confirms momentum turning downward.


Gold is breaking out of a channel, clearing $1,284 to signal the start of a new upleg with next potential resistance near $1,300 a round number and then a measured $1,368. Support rises toward $1,290 after calling off a head and shoulders top last week. RSI climbing up off 50 confirms uptrend intact and upward momentum increasing.

Crude Oil WTI continues to advance, breaking out over $45.00 and retesting it as new support after meeting some resistance near $45.60 having completed a measured move from a previous channel. RSI getting overbought suggests potential for a pause or correction sometime with next support near $44.30.


US Dollar Index is breaking down falling through the bottom of a trading channel taking out 93.60 and dropping toward 94.30. Falling RSI confirms downward pressure increasing. Next potential measured support near 92.10.

EURUSD is testing the top of a $1.1215 to $1.14809 trading range having rallied back up through $1.1400 and on toward $1.1450. Rising RSI indicates upward momentum increasing with next potential resistance near $1.1510 then $1.1560.

NZDUSD continues to trend higher, having successfully retested its 50-day average near $0.6800 and taking another run at $0.7000 with support rising toward $0.6965. Next resistance possible at the April high near $0.7065.

AUDUSD has stabilized near $0.7600 while RSI has stabilized near 50 suggesting the recent correction appears to have run its course with the underlying uptrend remaining intact. Initial resistance possible near $0.7630 then $0.7675 and $0.7700.

USDCNH continues to bounce around between 6.4560 and 6.5285 recently bouncing off a higher low near 6.4795 a Fibonacci level and trading near 6.4900 with initial resistance possible near 6.5000.

USDJPY is breaking down, taking out its previous lows near 107.55 which may become resistance and falling into the 106.30 to 106.90 area with next measured support near 106.00 followed by the 105.00 round number. RSI confirms downward pressure intensifying.

EURJPY held 121.70 on a retest potentially completing a double bottom while RSI has stabilized at another higher low suggesting downward pressure still easing. Initial rebound resistance possible near 122.390 then 122.90 with next support near the 120.00 round number.

CADJPY continues to retreat, falling from 85.80 down toward the 84.80 to 85.20 area with next support near 84.55 a Fibonacci level. RSI falling under 50 confirms momentum turning back downward.

USDSGD keeps trending lower with resistance falling under $1.3500 toward $1.3470 with next potential support near $1.3400 then $1.30. higher lows for the RSI, however, suggest downward momentum slowing and a bottom possibly forming.

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