Summary:
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DE30 is trading at YTD highs
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US500 near 3000 pts, remains close to ATH
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A reversal pattern can be spotted on CHFPLN
DE30
The German DAX (DE30) is trading at YTD highs after a break above the 12 650 handle. Looking at weekly interval, a breakout could have opened the way towards 13 125 pts. However, one should keep in mind that the latest upward move was made in response to optimism spurred by Brexit and US-China headlines, so any pessimistic information could reverse the sentiment. Technically speaking, as long as the price is above the 12 650, bulls seem to be in market’s favour. The nearest support lies at around 12 450 pts and a break below could trigger to bigger downward correction.
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DE30 W1 interval. Source: xStation5
US500
The US stock index, S&P500 (US500), is trading near its ATH. Following a break above the downward sloping trendline (green line), the upward move is being continued. The index trades below the 3000 pts handle, but the main trend remains upward, so one cannot rule out an attack on key resistance at 3030 pts. This area was tested a few times, so every attack on this level increases the likelihood of breaking to a fresh ATH. The nearest support can be found at the 2945 pts area.
US500 D1 interval. Source: xStation5
CHFPLN
Last but not least, let’s look at the CHFPLN currency pair. Looking at the weekly interval, one can see that the pair was under severe selling pressure recently. A double top pattern can be spotted on the chart and, in theory, it hints at a trend reversal. As long as the price stays below the neckline of a double top formation (3.9360), declines are more probable. On the other hand, downward move was halted at the lower limit of the Overbalance structure. A break below the yellow box may trigger a downward move towards the upper limit of the earlier-broken consolidation range (3.8600).
CHFPLN W1 interval. Source: xStation5
