Chart Signals: Big breakouts for indices while gold keeps on sinking

Indices are taking off across all regions with SPX 500, Germany 30 and Japan 225 leading the charge.

Indices are taking off across all regions with SPX 500, Germany 30 and Japan 225 leading the charge. Hong Kong 50 and India 50 have also turned sharply upward today along with UK 100 and the US 30. Gold remains under pressure still sinking as capital leaves defensive plays while oil trades up to a new high on trend. GBP and CAD have been picking up in currencies. 

Asia Pacific Indices

Australia 200 held 5,300 and is testing 5,400 where a breakout would signal the start of a new upleg that could challenge 5,500 initially. RSI stabilizing above 50 suggests trading correction may be ending.

Japan 225 is breaking out today, clearing 16,820 a Fibonacci level which may become new support and driving on toward the 16,920 to 16,970 area with next potential resistance near the 17,000 round number then 17,135. RSI lifting off 50 confirms momentum turning upward.

Hong Kong 50 is breaking out in a big way, blasting up through 20,000 and 20,210 to signal an upswing and carrying on toward the 20,440 to 20,500 area with next potential resistance near 20,590 then 20,705 both Fibonacci levels. RSI crossing back above 50 confirms upturn in momentum.

India 50 is breaking out of a downtrend, driving up off 7,750 toward 7,940 with next resistance near 8,000 round number then 8,080 a Fibonacci test. RSI back above 50 confirms correction over and underlying uptrend resuming.

North American and European Indices

US 30 is breaking out of a short term downtrend today clearing its 50-day average and a falling resistance line through 17,715. The index has advanced into the 17,850 to 17,880 area with next potential resistance near 17,900 where a breakout would confirm a head and shoulders top has failed then the 18,000 round number. RSI back above 50 confirms correction over and momentum turning back upward. 

US NDAQ 100 remains in an upswing building on yesterday’s breakout over 4,400 and up through its 50 and 200-day averages carrying on toward 4,475. Next upside tests appear near 4,500 a round number and Fibonacci level then the April high near 4,600. 

US SPX 500 has broken through 2,082 former shoulder resistance calling off a head and shoulders top formation. Trading near 2,090, next resistance appears near 2,100 then 2,112. RSI back above 50 confirms the recent pullback has ended and upward momentum resuming.

UK 100 is in rally mode again today, building on yesterday’s breakout over 6,200 and driving on 6,270 to confirm the start of a new upleg with next resistance possible near 6,355 then 6,455. Rising RSI confirms upward momentum accelerating.

Germany 30 is breaking out today, building on yesterday’s retaking of 10,000 by blasting through its 200-day average near 10,145 and driving on toward 10,230. Next upside resistance possible at its April high near 10,480. Support rises toward 10,180. RSI rising up off 50 confirms upward momentum increasing. 

Commodities

Gold remains under pressure, breaking down through $1,228 a Fibonacci level and falling toward $1,218 with next potential support near $1,207, before bouncing toward $1,220. Next support possible near $1,207 a previous low, the $1,200 round number or $1,194 a Fibonacci retracement level. RSI under 50 and falling confirms downward pressure increasing.

Crude Oil WTI is trying to resume its uptrend clearing $48.70 and advancing on $49.20 but struggling with $50.00 round number resistance. A negative RSI divergence emerging suggests current uptrend getting tired with a correction back toward $48.60 or $48.10 possible.

FX

US Dollar Index has paused near 95.60 above 95.20 support and below 96.00 and 96.40 resistance. RSI indicates upward momentum levelling off as the index pauses to consolidate recent gains. 

EURUSD’s selloff has been contained by support at the 200-day average near $1.1111 for now but it remains in a downswing below $1.1200 a Fibonacci level. Falling RSI indicates downward pressure still increasing.

GBPUSD keeps on climbing, rallying up off higher support near $1.4600 breaking through $1.4640 resistance ad driving on toward $1.4720 to test a downtrend line with next resistance possible on a breakout near $1.4780 where a prior high and the 200-day average cluster. 

NZDUSD remains supported above $0.67000 and RSI stabilizing near 40 suggests recent downward pressure may be fading. Rebounds may be contained in the near term by the 50-day average near $0.6830.

AUDUSD has stabilized near $0.7200. It remains in a downtrend of lower highs and lows below $0.7225 and its 200-day average near $0.7255. Support in place near $0.7130.

USDCNH is holding steady near 6.5600 while it digests recent gains and works off an overbought RSI. Next resistance possible near 6.5800.

USDSGD continues to hang around $1.3800 trading between $1.3775 and $1.3840. RSI suggests upward momentum levelling off.

USDJPY is sending mixed signals. The pair sitting near 110.00 and 50 on the RSI appears neutral. A longer term downtrend remains intact below 110.55 Fibonacci resistance but shorter term trends of higher lows in the pair and RSI suggest bottoming and emerging accumulation.

EURJPY is holding steady between 122.00 and 124.00 in what appears to be another sideways pause within a longer-term downtrend. 

CADJPY is trending sideways in a channel between 82.50 and 85.50 recently trading near 84.50. RSI sitting on 50 confirms sideways momentum.

USDCAD is rolling over, falling from near $1.3100 back toward $1.3030 with next potential support near $1.3000 a round number and Fibonacci test then the 50-day average near $1.2910. RSI falling away from 70 after being overbought signals a correction starting.