OIL.WTI
Let’s start today’s analysis with the oil market. The price of this commodity slumped during yesterday's session. However, looking at the H4 chart from a technical point of view, one can see a potential harmonic pattern - Butterfly. Despite the huge sell-off, the downward move was stopped at the 127.2% Fibonacci exterior retracement. According to the harmonic analysis, the upward correction may be on the cards now. On the other hand, it is also worth noting that the buyers did not manage to break back above the local residence at $101.70, which may herald another attack on the aforementioned support at $98.30 (127.2% retracement). In case of a break below, the area near $94.50 will be the next target for market bears.
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OIL.WTI H4 interval. Source: xStation5
GOLD
Next, let's take a look at the gold market. Analyzing the chart on the H4 interval, one can see that the price has also plunged recently. The price broke below the support at $1,787 and reached the 127.2% Fibonacci exterior retracement of the recent upward impulse started on 16th of May. According to the harmonic methodology, the potential butterfly pattern may be on the cards. The support at $1,762, where lies the potential D point of the formaitian, should be considered as a key support for now. Should buyers manage to stop declines here, the upward correction may start. In such a scenario the $1,787 area is the nearest resistance to watch. On the other hand, breaking below the aforementioned support at $1,762, may lead to the continuation of a downward move, even towards the next support at $1,730, where the next 161,8% Fibonacci retracement is located.
GOLD H4 interval. Source: xStation5
DE30
Last but not least, let’s take a look at the German index - DAX (DE30). Looking at the H4 interval, one can see that the index has been trading in a downward trend recently. The index dropped below the support at 12,430 pts, which is a result of March lows. However, we can observe the buyers response to today's session and the attempt to make an upward correction. Anyway the aforemantioned 12,430 pts support remains the key level for now. Should market bears manage to bring the price below, another downward impulse may be on the cards. On the other hand, should the price stay above, the upward correction toward resistance at 12,825 is possible.
DE30 H4 interval. Source: xStation5
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