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Chart Signals: Indices start to break out of bases

Chart Signals: Indices start to break out of bases

Technical signals continue to turn increasingly bullish with major indices shrugging off recent corrections and driving up out of bases with RSI providing upward momentum confirmation. CAD is also in rally mode while crude oil keeps base building. JPY on the other hand is starting to give back recent gains while gold struggles with resistance.

Asia Pacific Indices

Australia 200 has popped up from 4,880 to test 5,000 round number and Fibonacci resistance with next upside tests possible near 5,035 and 5,075 and support rising toward the 4,960-4,980 area.

Japan 225 rallied up from 15,830 through 16,000 and on toward the 16,520 to 16,600 area. While RSI regaining 50 confirms momentum turning upward. Next potential resistance near 16,815 a 38% retracement of the recent downtrend followed by the 17,000 round number.

Hong Kong 50 keeps climbing within a 19,090 to 19,710 Fibonacci trading channel rising from near 19,450 toward 19,600. Rising RSI indicates growing upward momentum. A breakout could challenge the 20,000 round number.

India 50 appears to be turning upward rallying out of a bear trap washout and up off 7,000 through 7,055 and on towards 7,200 with support rising toward 7,130. RSI confirms a trend change underway. Next potential resistance near 7,255 then 7,360.

North American and European Indices

US 30 successfully retested 16,450 to confirm a recent breakout plus Fibonacci  and moving average support. It has spiked back up through 16,835 a Fibonacci level and rallied on towar 16,870 with next resistance possible near the 17,000 round number. RSI above 50 and rising confirms uptrend momentum accelerating.

US NDAQ 100 held 4,180 support through another test, bounced back up through 4,225 and then rocketed up toward 4,345 to test next Fibonacci resistance. Rising RSI confirms increasing upward momentum.

US SPX 500 is coming off a big bullish engulfing day that saw it regain 1,940 and drive on to test Fibonacci resistance near 1,976 with next potential resistance at the 2,000 round number. Support rises toward 1,970. RSI above 50 and rising signals upward momentum increasing.

Germany 30 is breaking out today, clearing 9,580 channel resistance and taking a run at 9,775 above 9,725 where the 50-day average and a 38% Fibonacci retracement cluster. RSI retaking 50 confirms momentum turning upward with next resistance near 9,875. .

UK 100 is breaking out of a base today, clearing 6,100 and advancing on 6,180 while support rises toward 6,160 from 6,110. RSI breaking out over 60 confirms upward momentum increasing. Next potential resistance near 6,310 an old high and the 200-day average.


Gold challenged the $1,245 to $1,250 area between downtrend and channel resistance levels and the top of its symmetrical consolidation triangle. It failed to breakout and dropped back into the $1.230 to $1.236 area. RSI holding steady just below 70 suggests overbought conditions easing through sideways consolidation rather than a big retreat.

Crude Oil WTI spent the day bumping up against $32.65 Fibonacci resistance where a breakout would complete a W double bottom base pattern with next resistance near $33.80 a prior support/resistance level. RSI above 50 and rising signals momentum turning increasingly upward. It fell back toward $32.10 with more support near $31.80 which would be another higher low if it holds. .


US Dollar Index is holding steady near 98.30 consolidating its recent rally and breakout over 98.00. RSI indicates upward momentum still growing with next resistance near 98.60 then 99.00.

EURUSD has stabilized near $1.0860 near the bottom of yesterday’s trading range. Resistance falls toward $1.0900 from $1.0925 with support near $1.0830 then $1.0790 a channel bottom and Fibonacci level. RSI indicates downward pressure intact.

NZDUSD is hanging around $0.6630 near its 50 and 200-day moving averages in a $0.6560 to $0.6730 trading channel. RSI sitting on 50 confirms sideways momentum.

AUDUSD continues to form an ascending triangle base between $0.6900 and $0.7300 with support coming in near $0.7110 holding an uptrend line and its 50-day average. Initial resistance near $0.7190 then $0.7250.

USDCNH has dropped back to retest 6.5500 after running into some resistance near 6.55600 but it remains in an uptrend above 6.5325 with next resistance at the 50-day average near 6.5790. RSI testing 50 which may confirm or reject the start of a new uptrend.

USDJPY soared up off of 112.15 calling off a downdraft and setting a higher low, driving up toward a Fibonacci cluster near 114.00 with channel resistance looming near 115.00. RSI advancing on 50 indicates downward pressure fading fast.

EURJPY dipped below 122.40 and rallied right back up toward 124.00 in what looks like a bear trap washout. RSI above 30 and rising indicates downward pressure exhausted. Nest resistance possible on a rebound near 125.00 then 126.20.

CADJPY is breaking out today, clearing 84.55 a Fibonacci level that may become support and advancing on 85.00 with net potential resistance near 86.20. Pair has also decisively broken out of a downtrend.

USDCAD is breaking down again today, driving down from $1.3550 which was the 62% retracement of the previous uptrend suggesting longer term a round trip back toward $1.2835 appears possible. In the shorter term, some support has emerged near $1.3380 followed by $1.3290 with resistance dropping toward $1.3430.

USDSGD has dropped back toward $1.4000 and appears to be rolling over, particularly with RSI faltering short of 50 and starting to fall as well. Initial support possible near $1.3955 the 200-day average then $1.3890 channel support with resistance falling toward $1.4075.

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