Top three charts of the week: DE30, US100, GOLD

DE30

Let’s start today’s analysis with the German index. Looking at the H4 interval, we can see that the recent upward move was halted at the key resistance area. Purple area on the chart below is marked with previous price reactions and the 78.6% Fibonacci retracement. In addition, the recent upward move looks like ABC correccion, which may herald a resumption of a downward move. However, one should also take into account that the price bounced off the first key support yesterday (12,950 pts). Break below this level could herald a bigger downward move. In such a scenario way even towards 12,550 pts will be opened. 

DE30 H4 interval. Source: xStation5

US100 

Bull marketon US tech index Nasdaq doesn't slow down. Looking at the H4 interval on US100, one can see the upward move accelerated after breaking higher the resistance at 11,550 pts. The index was only 3% below the all time highs this week. After breaking above the resistance at 12,000 pts, this level can now be considered a short-term support. As long as the price sits above, a move toward new records looks to be the base case scenario. On the other hand, should the bigger downward correction start, the nearest key support to watch lies at the lower limit of 1:1 structure (11,845 pts.).

US100 H4 interval. Source: xStation5

GOLD 

Gold struggles to resume upward trend and price of the commodity took another sharp drop yesterday. However, the decline was halted at the key support level. Looking at the H4 interval, one can see buyers appeared at the lower limit of local 1:1 structure, signalling that the continuation of an upward correction is possible.  If the current sentiment prevails and price stays above the $1,885 handle, a move towards resistance at 1920$ could be on the cards. On the other hand, breaking below the next support at $1,875 may pave the way for a bigger decline.

GOLD H4 interval. Source: xStation5