And it happened! The bears were talking about this for a long time and it finally happened; a bearish correction. The price broke the long-term up trendline on the SP500 and is aiming lower. The target for the drop is still far away, so it might be nice to buckle up.
The DAX also dropped like a rock after the breakout of the long-term up trendline and the neckline of the triple top formation. The next target: 14100 points.
Although indices are sliding, gold is not climbing higher. A stronger dollar is definitely not helping.
The GBPUSD came back inside the falling wedge pattern. That’s definitely negative.
The CADJPY is aiming for the 38,2% Fibonacci to test it as a crucial support.
The EURNZD is inside a small sideways trend. A breakout from it, will show us a direction.
The EURJPY has failed to create the inverse head and shoulders pattern and dropped lower.
The USDJPY bounced from the upper line of the triangle and brought us a sell signal with the target being on the lower line of this pattern.
The NZDUSD is in a false bearish breakout from the falling wedge pattern. That is possibly a very nice buying opportunity.
The GBPNZD is testing the combination of three important dynamic supports. A breakout can be an amazing sell signal.
The EURJPY broke the upper line of the wedge and is aiming higher with a buy signal.
The GBPCAD is in a giant symmetric triangle on the weekly chart. We will probably have to wait a long time till until the breakout but it will most probably be worth it.
The NZDJPY is in a flag formation. A breakout of its upper line will bring the positive sentiment back.
The GBPJPY is forming a head and shoulders pattern inside of the symmetric triangle pattern. A breakout of the lower line (and the neckline at the same time) can be a good bearish signal and a breakout to the upside can be a signal to go long.
Stocks and indices are dropping but three consecutive bearish days, is usually as much as sellers can do. Is it a good time for a bullish reversal? Especially that the SP500 is currently very close to a very important up trendline.
WTI Oil broke a crucial horizontal support and is aiming for the first Fibonacci retracement.
Gold is standing firm supported by the risk OFF mode but slightly bothered by the stronger USD.
The EURUSD is still dropping after breaking the neckline of a huge Head and Shoulders pattern.
The GBPUSD still has some room to the neckline, which makes it a plan minimum for the sellers.
The NZDUSD broke an important dynamic support and is aiming lower.
The EURNZD is close to a bullish breakout from the symmetric triangle pattern.
The NZDCHF continues to decline after a false bullish breakout from a very handsome flag pattern.
There’s an excellent long-term setup on the CHFJPY, where we are finishing a bearish correction. The price is bouncing from the combination of a horizontal and dynamic support and everything seems ready for another bullish wave.
The AUDNZD is in a short-term sideways movement but with a long-term negative outlook.
The NZDCHF is in a perfect flag formation. For the buy signal, we need to see the breakout of the upper line of this pattern.
The NZDJPY is in a similar situation but here we additionally have a bounce from the horizontal support. The sentiment is positive.
Silver uses every chance to go lower. Currently, we are testing the long-term support of a symmetric triangle. The outlook is rather negative.
The dollar Index broke the neckline of the giant inverted Head and Shoulders pattern and yesterday it defended it as a support with a hammer candle. That is definitely a positive and optimistic sign for buyers.
Stocks are back in bullish mode, so we’re back to looking for sweet buying occasions too. I have to admit, after the recent correction, we do have a lot of handsome buying opportunities.
Today’s comes from Prudential, a Fortune 500 company in the Financial Services industry. Here, we have a buy signal and it’s very fresh as it was only triggered yesterday!
Why are we positive here? We have three main positive factors. First, is the long-term uptrend. Second, is the defense of the horizontal support on 95 USD (orange). Third, and maybe the most important, is the wedge pattern (blue) and the breakout of its upper line. In theory, that breakout ends the bearish correction and starts the new bullish wave.
As long as the price stays above the orange support, the sentiment is positive. Price breaking the 95 USD line will mean the end of a buy signal, but this scenario does not seem likely at the moment.
First, look at the chart on JP Morgan. We have a beautiful head and shoulders pattern. The formation started in February however its fate is being decided as we speak, while the price is currently testing the neckline (blue) after drawing the right shoulder.
What will happen with the neckline will decide the future direction of JPM. We’re still waiting for the open bell in the US but yesterday’s session ended with a small victory for buyers. The price managed to defend the neckline with the false bearish breakout pattern (red). Usually, this kind of formation is a great buy signal.
If we combine that with a generally positive sentiment on stocks (another case of buying the dip!) we get a very bullish mixture here. Current sentiment on JPM seems positive and will stay this way as long as the price stays above the neckline.
A short analysis today of Adidas, a German company, which needs no introduction. It’ll be a very short analysis because the situation here is very straightforward. We have one crucial support, which is being currently tested by the price. What will happen from here will depend on the mid-term sentiment on this instrument.
So at the end of June, Adidas broke the crucial horizontal resistance, slightly above the psychological level of 300 EUR. It was not just a round price but also the upper line of the sideways movement locked inside of the rectangle formation (yellow lines).
That breakout, gave us a buy signal and indeed, the price did climb higher making new all-time highs. Not bad, huh? Sentiment changed though when the global markets started to slide. Adidas did not resist and went down as well.
And here we are, Adidas is currently testing the 303 EUR support but this time, from the top. As long as we stay above, the sentiment is positive. A bounce here in the shape of a hammer or a bullish engulfing pattern would be a great occasion to buy.
On the other hand, the price closing a day below the yellow support would be a very negative sign as that would mean a false bullish breakout and if you’ve been following us long enough, you know what that means. If not, then let me explain: it means trouble, big, big trouble.