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Chart Signals - Monday, Dec 14

Chart Signals - Monday, Dec 14

Asia Pacific indices

Australia 200 fell sharply after taking out 5,000 breaking its previous low near 4,960 and testing 4,940 before finding some support with more possible near 4,900 a round number and prior low. RSI indicates downward pressure still increasing for now.

Hong Kong 43 has been knocked down from near 21,700 through its prior low near 21,585, toward 21,080 with initial resistance falling toward the 21,240 to 21,260 area. RSI getting oversold so it’s possible the 21,000 round number could hold.

India 50 remains in a downtrend with resistance falling toward 7,500 and the index sliding toward 7,560 with a retest of 7,515 possible which could end in a big double bottom of a big breakdown. A positive RSI divergence suggests a trend change pending.

Japan 225 is coming off another bearish engulfing day that saw it falter near 19,200 then nosedive down through 19,000 then 18,905 (which may become rebound resistance)  before finally stabilizing just below 18,740 a Fibonacci level with support near 18,635 then 18,430. RSI confirms downward momentum still increasing.

North American and European Indices

US 30 is still rolling over, falling away from its 50 and 200-day moving averages near 17,500 and falling on into the 17,195 to 17,355 zone between two Fibonacci levels. RSI under 50 confirms momentum turning downward with next potential support near the 17,000 round number and initial resistance near 17,425.

US NDAQ 100 keeps falling away from a double top breaking down through its 50-day average near 4,580 and falling toward 4,530 with next support possible near 4,500 then 4,455 a Fibonacci level. RSI sliding under 50 confirms momentum turning downward.

US SPX 500 has been hammered again, diving down from near 2,060 slicing through 2,040 and 2,015 Fibonacci levels, toward 2,008 with a retest of the 2,000 round number coming into view with next support should that fail near 1,975.

Germany 30 is selling off again turning down from a lower high near 10,600, taking out 10,500 and then Fibonacci level near 10,365 before finally finding some support and near 10.270. RSI confirms increasing downward momentum. Next potential support near 10,195 with initial bounce resistance near 10,350.

UK 100 remains under heavy pressure, taking out 6,000 and falling on toward 5,920 with next potential support should that fail to hold appears at the summer double bottom near 5,855. RSI getting oversold so a rebound looks possible at some point with initial resistance near 5,960.


Gold has bounced up off a higher low near $1,062 rallying back up into the $1,075 to $1,080 area in what appears to be the right shoulder of a head and shoulders bottom. It still remains below Fibonacci resistance near $1,086 and 50 on the RSI both of which need to be overcome to call off the recent downtrend and confirm an upturn. Next resistance on a breakout possible near $1,100 with next downside support in the $1,045 to $1,050 area.

Crude Oil WTI continues to slide, falling to test key support in the $34.75 to $35.00 range near a round number and the 2008 low which has held so far. Oversold RSI suggests a snap back trading bounce possible at some point with initial resistance near $35.40 then $36.40.


US Dollar Index is holding in the 97.00 to 98.00 range near 97.60 in what still looks like a pause in an emerging downtrend with RSI under 50 indicating growing downward momentum. Next potential support near 96.60 with next resistance near 98.45.

EURUSD keeps working its way higher with support rising toward $1.0965 a Fibonacci test and regaining the $1.1000 round number with next upside resistance possible at the 200-day average near $1.1030 then the $1.1111 round number which coincides with a Fibonacci level. Rising RSI confirms momentum turning increasingly upward. .

NZDUSD continues to encounter resistance near $0.6785 but remains in an uptrend with support rising toward $0.6700 from $0.6615. Next upside test in the $0.6865 to $0.6900 area.

AUDUSD has been knocked back from $0.7275 toward $0.7190. It remains in a broader uptr5end but RSI breaking under 50 suggests a deeper correction perhaps back toward $0.7100 trend support remains possible. Initial resistance near $0.7220.

USDJPY is starting to turn decisively downward diving into the 120.60 to 121.00 area after a break of 121.80 completed a triple top. Next potential support near 120.00 then 119.00. RSI confirms the downturn falling under 50 after completing a head and shoulders top.

EURJPY has resumed its primary downtrend falling toward $1.3290 having recently peaked at a lower high just above 134.00 that has kept its falling channel intact. RSI nearing 50 where a breakdown would confirm the downshift. Next potential support tests near 132.00 then 130.80.

CADJPY remains under pressure having fallen from near 88.80 into the 87.70 to 88.00 area, just above 87.40 is August low where a retest could end in a double bottom of a new downleg. RSI getting really oversold suggests a trading bounce possible in the near term.

USDSGD is still trending sideways between $1.3890 and $1.430 recently moving back into the upper half with the pair moving up from $1.4080 toward $1.4140 and the RSI regaining 50. Nest resistance near $14200 with next support near $1.4000.

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