Market Overview: Indices and Commodities!

In this technical analysis article, we will review a few chart patterns and possible trade setups on the following assets:

  • Dow Jones Index;

  • German DAX Index;

  • Gold spot - XAUUSD;

  • Crude Oil - WTI;

Dow Jones - 4H Chart


The stock market indices have been trading in a range in the past few weeks, albeit quite bullish. Technically speaking, the pattern still maintains the higher-highers/higher lows series on the shorter term timeframe, which is the definition of an uptrend.

  • Key resistance zone for this week: 26,770

  • Key resistance zone for this month: 27,200

As long as we manage to trade below both of those resistance levels, we can scalp on the short side with target at the support levels:

  • Key support for this week: 26,300

  • Key support for this month: 25,900

(See next 1H chart for our primary trading plan)

Dow Jones Industrial - Technical Analysis Forecast

Dow Jones - IH Chart


Our primary trading plan.

Dow Jones Industrial - Technical Analysis Forecast

German DAX - 4H Chart


The German index had a swift recovery after the March sell-off. We are looking for a temporary top by end of next week as per the wave (iii) and targeting a pullback to at least 12,400 then 12,000. Ideal short entry would be as close to the 13,200 resistance as possible.


Current pattern favors a rising wedge or an Ending Diagonal in Elliott Wave Principle parlance.

German DAX - Technical Analysis Forecast

XAUUSD - 4H Chart


Gold remains bullish as long as 1770 support is not tested this coming week. If market manages to cross above 1810 one more time then we are tracking at least 1825/30 but Fibs are suggesting even 1860.


Hold a buy around 1795-1800 with risk 1790 for intraday trading and risk 1770 for swing trading.

Gold spot - Technical Analysis Forecast

US Crude Oil - 4H Chart


The crude oil market has been trading steadily at higher prices for the third month. If we don't see any strong breakouts above the distribution zone, we will initiate a short position at the first sign of selling pressure, which we haven't seen since April.


Target on a correction: Upper support area.

US Crude Oil - Technical Analysis Forecast
 

Don't forget:

  1. To always prepare & analyze before executing a position;

  2. To know your risk before you execute the trade;

  3. To know the style of your trading: intraday vs. swing;

  4. To journal your trades - create your Book of Charts folder;

  5. To be a Mindful Trader!

 

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