US100
Let’s start today’s analysis with the US tech index - Nasdaq-100 (US100). Index got stuck in a local trading range following recent highly volatility moves triggered by virus fears. Looking at the H1 interval, one can see that the sideways move may resemble an inverse head and shoulders formation, which often heralds an upward move. According to the classic technical analysis, a break above the 16,440 pts area (neckline of the pattern), may herald a resumption to a main trend, which is bullish. Should the index realize range of the formation in a textbook manner, the price may reach fresh all-time high. On the other hand, if the index resumes decline and the support at 16,100 pts is breached, the sell-off may gather momentum.
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US100 H1 interval. Source: xStation5
GOLD
Next, let’s take a look at the gold market. The precious metal has made a downward correction recently. Should the current bearish sentiment prevail, the nearest key support area to watch can be found in the t $1,760 - $1,765 area, and is marked with the previous price reactions as well as 61,8% Fibonacci retracement of the recent upward swing started in August. The area is also strengthened by the wide 1:1 structure and the upward trendline. According to the classic technical analysis, as long as the price sits above the aforementioned area, market bulls have a chance to resume upward movement. On the other hand, breaking below the aforementioned area could trigger a bigger downward move.
GOLD D1 interval. Source: xStation5
DE30
Last but not least, let’s take a look at the German index - DAX (DE30). Looking at the D1 interval, one can see that recent downward move was stopped at the key mid-term support. The zone near 15,090 pts is marked with previous price reactions as well as a wide 1:1 structure. According to the Overbalance methodology, bouncing off the geometry may herald a return to the main trend, which is upward. On the other hand, breaking below this level could pave the way for a bigger correction. Considering the bearish scenario, the next potential support lies at 14,800 pts.
DE30 D1 interval. Source: xStation5
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