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Chart Signals: Indices rally while gold keeps rolling over

Chart Signals: Indices rally while gold keeps rolling over

Asia Pacific indices remain in rally mode as they catch up to pausing US and European indices after lagging behind their recent recovery. The flow of capital back out into risk markets can be seen in the way gold has been falling off a cliff this week especially after completing the right shoulder of a head and shoulders top formation.

Asia Pacific Indices

Australia 200 continues its upswing with the index and the RSI in gear. Support moves up toward 5,075 from 5,000 with the pair trading near 5,120 and next resistance possible near 5,145 then 5,185.

Japan 225 continues to rebound with support moving up toward 16,640 and the index driving up into the 16,760 to 16,830 area near 16.815 a Fibonacci level with next resistance on trend near the 17,000 round number. RSI back above 50 confirms momentum turning upward.

Hong Kong 50 is trading well above its 2,1000 breakout point in the 21,390 to 21,470 area with next round number resistance possible near 21,500 then 22,000. RSI getting overbought suggests potential for a short term pause.

India 50 keeps screaming higher with support moving up from 7,750 toward 7,870 confirming the recent breakout and the index advancing on 7,910 with next resistance possible near 8,000 then 8,080 a Fibonacci level. RSI confirms growing upward momentum.

North American and European Indices

US 30 is trading between 17,860 and 17,960 just below the top of its previous range, consolidating a breakout and potentially preparing for an assault on 18,000 round number resistance.

US NDAQ 100 is retesting its 4,550 breakout point with support rising toward 4,540 and resistance possible near 4,570 then 4,600.

US SPX 500 is sitting on 2,080 the top of its current trading channel with support moving up toward 2,075 from 2,060 indicating continued accumulation after a pop up toward 2,088. Next upside tests near 2,100 then 2,120 on trend.

UK 100 has paused in the 6,340 to 6,380 area to digest yesterday’s big breakout and rally up from 6,265. RSI indicates upward momentum still growing. Next potential upside tests near 6,450 then 6,500 on trend.

Germany 30 successfully retested 10,000 as higher support and advanced into the 10,080 to 10,110 range just below 10,125 resistance where a breakout would confirm the completion of a head and shoulders base with next potential resistance near 10,290. RSI indicates upward momentum accelerating.


Gold tried to bounce up off $1,228 a Fibonacci support and its 50-day average but ran out of gas near $1,238 and resumed falling breaking support and sliding toward $1,224 with next potential support in the $1,205 to $1,215 area. RSI dropping under signals momentum turning downward again.

Crude Oil WTI has been bouncing between $40.90 and $41.70 around $41.30 a Fibonacci level where it appears to be consolidating with a $40.00 to $42.00 channel emerging. An overbought RSI and negative divergence indicates upward momentum slowing and the potential for a pause or trading correction increasing.


US Dollar Index peeked above 95.00 briefly but was knocked back under. It continues to trade above 94.80 the top of yesterday’s bullish engulfing candle suggesting renewed interest. Next potential resistance near 95.25 then 96.00 on an upswing.

EURUSD has two significant tests underway at $1.1255 a Fibonacci level for the pair and 50 for the RSI. Should these hold, the current uptrend would remain intact with next resistance near $1.1310 then $1.1350. Failure would signal a downturn where the 50-day average near $1.1180 could be tested.

NZDUSD faltered near $0.6950 short of $0.7000 and has dropped back under $0.6870 and on toward $0.6845 with next potential support near $0.6800 then $0.6765. It remains in an uptrend with the pair still in a rising channel and RSI holding 50.

AUDUSD is bumping up against $0.7700 again having traded up to$0.7740 with next measured resistance on a breakout near $0.7900. RSI sending mixed signals with lower highs indicating slowing upward momentum but rising off 50 indicating underlying uptrend intact.

USDCNH is testing the top of its 6.4570 to 6.5000 trading range with support moving up toward 6.4870. RSI clearing 50 signals momentum turning upward. Next potential resistance at the 50-day average near 6.5120 then 5.5290 a Fibonacci level.

USDSGD continues yesterday’s big rally breaking out over $1.3600 and advancing on  $1.3640 with next potential resistance near $1.3735 a previous high followed by a measured $1.3800. RSI clearing 50 confirms the upturn in momentum.

USDJPY is holding above 109.00 trading between there and 109.40 as it consolidates its recent rebound. RSI climbing toward 50 indicates downward pressure easing and a run at the 110.00 round number still possible in the near term.

EURJPY is still trading between 122.50 and 124.00 trying to decide whether to resume its downtrend or start a recovery play. A higher low in the RSI suggests downward pressure weakening and base building underway.

CADJPY is holding steady near 85.00 with the RSI near 50 as it takes a break from recent volatility within a 84.55 to 86.20 zone between two Fibonacci levels.

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