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Chart Signals - Monday, Dec 7

Chart Signals - Monday, Dec 7

Asia Pacific indices

Australia 200 rallies up off a higher low near 5,110 keeping its underlying uptrend intact. Support has since moved up toward 5,145 then 5,170 as the index has advanced on 5,190 with next potential resistance near 5,245 a Fibonacci level. RSI indicates sideways momentum intact with the channel top near 5,310.

Hong Kong 43 has bounced up off of 22,000 toward 22,270 but it really needs to retake 22,600 a recent peak and 50 on the RSI to call off a descending triangle that has been forming above 21,860. Initial support near 22,145 a Fibonacci level.

India 50 has stabilized near 7,800, but it’s unclear if it is still base building or has resumed its primary downtrend with RSI and the index sending mixed signals. A move above 7,825 or below 7,775 would give a clearer signal on direction.

Japan 225 remains in an uptrend, rising toward 19,740 up off a successful test of 19,380 Fibonacci support and 50 on the RSI both of which also established higher lows. Significant resistance remainsin place in the 19,900 to 20,000 zone where a Fibonacci cluster and round number converge.

North American and European Indices

US 30 remains in an uptrend having established higher support near 17,415 above its 50-day average. The index has rebounded back up toward 17,840, clawing back nearly all of Thursday’s losses while RSI has quickly regained the 50 level. Support rises toward 17,800.

US NDAQ 100 didn’t stay below 4,600 for very long quickly bouncing back up toward 4,685 and then driving on toward 4,720 to bring it back within striking distance of 4,735 resistance.  RSI holding 50 confirms underlying uptrend remains intact.

US SPX 500 is coming off a big turnaround that saw is successfully test its 50-day average near 2,040, bounce toward 2,060 a Fibonacci level then drive up toward 2,090. It appears to be setting up for another run at 2,100 or prior highs near 2,108 or 2,115.

Germany 30 finally found some support near 10,600 and has bounced back up into the 10,845 to 10,865 near a Fibonacci cluster. Next rebound resistance possible near the 11,000 round number with next support neat 10,740.

UK 100 bounced up off of 6,200 a higher low that keeps its underlying uptrend intact and has advanced on 6,290 with next potential resistance in the 6,300 to 6,310 area but has been unable to get through. Next resistance near 6,360 if successful with downside support rising toward 6,275 from 6,235. .


Gold staged a big catch up surge Friday, driving u from near $1,060 toward $1,080 over two hours then levelling off near $1,086, a Fibonacci level. Next upside resistance near the 1,100 round number with downside support near $1,078. RSI nearing a test of 50 which could indicate if this is a trding bounce or the start of a bigger turnaround.

Crude Oil WTI has slipped back under $40.00 once again falling to test the bottom of its $39.00 to $42.00 trading channel. Should that fail, the August low near $37.40 or the 2008 low near $35.00 could potentially be retested. Initial resistance on a rebound possible near $39.50 then $40.30.


US Dollar Index has stabilized in the 98.20 to 98.40 range above support that has emerged in the 97.45 to 97.55 area above the 50-day average. A lot of technical damage was done yesterday though and so far the rebound has been limited.

EURUSD has run into round number resistance near $1.1100 not a surprise given its explosive rally up from near $1.0500. In the ensuing correction, it has stabilized in the $1.0840 to $1.0940 area above $1.0800 a key support/resistance level.

NZDUSD continues to turn upward, retesting $0.6730 as new support following a breakout. Initial resistance possible near $0.6790 then $0.6870 and $0.6900. RSI above 50 and rising confirms upward momentum increasing.

AUDUSD saw its first advance on $0.7400 rejected but it remains in an uptrend trading above a higher low near $0.7290 confirmed by a rising RSI. Next resistance on a breakout possible at the 200-day average near $0.7460 then the $0.7500 round number.

USDJPY remains stuck in a sideways channel between 122.25 and 123.75 but a head and shoulders top in the RSI suggests upward momentum may have already peaked and a trend change pending. Currently near 123.20 with initial resistance near 123.30 and initial support near 122.80.

EURJPY has steeled back toward the 133.60 to 134.40 area near its 50 and 200-day averages in normal backing and filling following a big spike up from 130.00 toward 134.70.

CADJPY remains stuck in a sideways channel between 91.50 and 93.50 with RSI confirming neutral momentum. Next downside support appears ne 90.70 ten the 90.00 round number.

USDSGD has been retesting $1.4000 as new resistance, confirming the recent breakdown below that big round number, while RSI also retesting 50 as resistance confirms a downturn. Next support possible near $1.3950 then $1.3890 and the October low near $1.3720.

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