Technical Outlook for DAX, FTSE, Gold Price, Crude Oil & More
Poor technical posturing inEuropean equity indices, especially the FTSE, suggests lower prices ahead. U.S. markets stronger, but looking more and more precarious by the day. Gold price action uninspiring but holding support, while crude oil attempting to break out of a wedge.
- DAX & FTSE setting up for lower prices
- Gold price action is weak, but still holding support
- Crude oil working on a wedge breakout
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DAX & FTSE setting up for lower prices
European indices are beginning to look increasingly bearish, with the DAX trading in a bearish channel. A lower-high from February could in place as of March 12. Maintaining below 12460 keeps the bearish price sequence intact. Support levels to watch start arriving at 12162 down to the early-month low aat 11831.
DAX Daily Chart (Bearish channel)
The FTSE is one of the weakest links in the global spectrum, with it having already made another lower-low and trading at its worst levels since December 2016. It sits below the 7100-area at the moment and may not be capable of sustaining a bounce from here. Even if it does, the descending wedge it is in suggests lower prices ahead. Looking to around 6900/700 on another leg lower.
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FTSE Daily Chart (Very weak price action)
Gold price action is weak, but still holding support
Gold price action continues to be very choppy, but the chart is stilling tilting lower below the 2013 trend-line. A descending wedge is coming into view with support on the wedge near 1300. A clean break below 1300 should have the precious metal rolling downhill. It will require a break higher and weekly closing capture of the 2013 trend-line to turn the picture bullish.
Gold Daily Chart (Weak, but holding support)
Crude oil working on a wedge breakout
Crude oil has been coiling up into a wedge since January, using the important July slope as the underside of the pattern. Today, it is trying to sneak out above, but needs to pick up a bit more momentum to consider it a break bringing 64-66+ into play.
If WTI makes a head-fake higher and then back lower, keep a close eye on the July slope. This slope has been in play on numerous occasions and is viewed as the ‘line-in-the-sand’ for the market.
WTI Crude Oil Daily Chart (Trying to break out of wedge)
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---Written by Paul Robinson, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.