DE30
Let’s start today’s analysis with the German index - DAX (DE30). Looking at the D1 interval, one can see that the index made the biggest downward correction during the whole upward impulse started in November 2020. In spite of painting a large head and shoulders pattern, sellers did not manage to break below the neckline of the pattern, which would be a strong bearish signal. The area near the 15,000 pts is the key support for now. Should buyers manage to hold the price above it, the index may resume an upward trend. The nearest resistance to watch lies at 15,470 pts, where the previous price reactions and the 100 - period moving average are located.
DE30 D1 interval. Source: xStation5
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Next, let’s move to the gold market. The precious metal finally broke above the key resistance zone near $1,768, heralding a possibility of a trend reversal. According to the Overbalance methodology, as long as the price sits above the upper limit of 1:1 structure (red rectangle), the bulls are in advantage. Taking this into account, a move towards the resistance area at $1,810 may be on the cards now. Sellers should also pay attention to the 50% and 61.8% Fibonacci retracements of a downward impulse started at the beginning of September. On the other hand, should the price return below the aforementioned $1,768 area, the downward move may deepen towards the $1,741 support zone.
GOLD D1 interval. Source: xStation5
US100
Last but not least, let’s take a look at the US tech index chart - Nasdaq-100 (US100). Looking at the D1 interval, one can see that the upward trend was halted. US100 broke below the neckline of the head and shoulders pattern and the downward correction deepened. According to the classic technical analysis, as long as the price sits below the neckline of the pattern (14,850 pts area), continuation of the downward move is the base case scenario. The nearest support to watch is marked with previous price reactions as well as the upward trendline (14,450 pts area). Should sellers manage to break below, a bigger sell-off may occur. In such a scenario, the next key support to watch lies at 14,000 pts (previous price reactions and lower limit of 1:1 structure).
US100 D1 interval. Source: xStation5
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