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Chart Signals: Technical signals mixed as markets fail to capitalize on oversold RSIs

Chart Signals: Technical signals mixed as markets fail to capitalize on oversold RSIs

Asia Pacific Indices

Australia 200 failed to retake 5,000 and has been driven downward again, sliding toward 4,880 with resistance falling toward 4,910. RSI levelling off and a double bottom appears possible but if 4,870 support fails, 4,790 could be tested.

Japan 225 is sending mixed signals. It continues to form a rounded bottom with an oversold RSI suggesting potential for additional bounces but it ran into resistance near 17,.740 and has been smashed back down toward 17,200 with next potential support in the 16,900 to 17,000 area.

Hong Kong 50 is still trying to stabilize near 20,000 trading between 19,800 and 20,100. RSI is really oversold so a bounce appears possible at some point but late weakness suggests bears haven’t given up their cause.

India 50 staged a bear trap reversal yesterday, dipping down toward 7,410 then rallying back u through 7,515 on its way toward 7,580. A positive RSI divergence suggests broad downward momentum starting to face. Initial resistance possible near 7,600 then 7,750.

North American and European Indices

US 30 has been driving relentlessly lower through the day falling from a small double top near 16,600 down through 16,475 a Fibonacci level and on toward 16,250 with next potential support near 16,190. RSI getting oversold again.

US NDAQ 100 has been pummelled down from near 4,360 toward 4,210 with next support possible near 4,195 a Fibonacci level then 4,130. Rebound resistance falls toward 4,230 from 4,280.

US SPX 500 failed to hold above 1,940, dropping from 1,950 down to test 1,900 with next potential support near 1,870. RSI remains oversold so we may be close to a selling climax but it’s hard to say when.

Germany 30 saw another attempt to rally above 10,000 and 10,045 totally rejected with the index sliding down toward 9,820 with resistance falling toward 9,890 a Fibonacci level. Next support possible near 7,775.

UK 100 challenged the 6,000 level but was unable to decisively clear it to signal a new uptrend. Instead the index has sold off down toward 5,870 nearing channel support near 5,855.


Gold has resumed its uptrend, rallying up off of $1,080, regaining $1,.086 and driving on toward $1,095 with next potential resistance near $1,100 then $1.115. RSI holding 50 suggests recent weakness was a normal correction within an emerging uptrend.

Crude Oil WTI is retesting the $30.00 round number after failing to hold above $31.00 earlier in the day with next potential support near $29.60. Signals are mixed. RSI remains really oversold suggesting potential for a bounce offset by lower highs indicating continued downward pressure.


US Dollar Index remains stuck in a sideways trend between 98.00 and 99.75 below the 100.00 big round number hurdle. RSI back above 50 however, suggests momentum may be turning upward.

EURUSD has bounced back up off the bottom of its $1.0800 to $1.1000 consolidation channel but remains in the lower half, trading between $1.0850 and $1.0880. RSI sitting on 50 confirms current sideways trend.

NZDUSD continues to attract support near $0.6500 after falling from $0.6665. Currently trading between $0.6520 and $0.6560 with next support possible near $0.6460 around previous lows. .

AUDUSD failed to retake $0.7000, peaking at $0.7020 and then diving down toward $0.6960 with next potential support at the September low near $0.6900. RSI levelling off but downward pressure still intact for now.

USDCNH continues to drift downward with resistance falling toward 6,5770 and next support possible near 6,.5565 then 6.5325 a Fibonacci level. RSI is testing 50 which could either confirm underlying uptrend momentum or signal a downturn.

USDJPY is bouncing around between 117.80 and 118.30 trying to decide whether to stage a bigger bounce and ease its oversold RSI, or resume its primary downtrend. Next resistance nar 118,75 with next potential support near 116.75 then 116.00.

EURJPY is trading between 128.50 and 127.90. A symmetrical triangle of higher lows and lower highs continues to form, indicating a consolidation phase underway to digest recent losses and work off an oversold RSI. Next potential downside support near 126.00 the April 2015 low.

CADJPY continues to find support near 82.00 and with RSI really oversold still has the potential to bounce back possibly toward the 82.70 to 83.10 range initially. A failure, however, would signal a new downleg that could potentially retest the 80.00 round number.

USDSGD continue to form a rounded top with resistance falling toward $1.4370 above $1.4300 support with its next downside test near $1.4250. RSI backing away from 70 suggests a correction starting.

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