The S&P 500 is rising into resistance and should soon find sellers, once it does a solid decline should give the shorts the upper hand. The DAX is lagging the U.S. markets while facing off with several angles of resistance. Gold is nearing the apex of a short-term triangle formation, awaiting a breakout for directional cues. Crude oil is likely to undergo a choppy period of trading, with a downward bias.
- S&P 500 and DAX 30 have resistance to contend with
- Gold is triangulating, breakout to develop at any time
- Crude oil looks headed for choppy period, downward bias
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S&P 500 and DAX 30 have resistance to contend with
The S&P 500 continues to rise but with resistance in the area and the market far from being in the clear, a decline is expected to unfold soon. The key right now is watching price action. The levels are there to turn the market lower but we need to see sellers step in and solidify those levels before turning aggressively bearish.
S&P 500 Daily Chart (Trading into resistance)
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The DAX is struggling to continue recovering and remains glaringly lagging the stronger U.S. market. There is a slope from October, price resistance from December and a trend-line from September keeping a lid on the current advance. The positive right now, though, is that the market has yet to forcefully turn down despite reason to. A break below 10786 is likely needed before downward momentum can come in.
DAX Daily Chart (At crossroads)
Gold is triangulating, breakout to develop at any time
Gold is coiling up towards a breakout from a triangle on the 4-hr time-frame. A top-side breakout will have price resistance in focus in the 1305/10-area while a breakdown will have slope support from the summer in focus.
Gold Daily Chart (Slope support, price resistance)
Gold 4-hr Chart (Triangle ready to break)
For an intermediate-term fundamental and technical outlook check out the Gold Forecast
Crude oil looks headed for choppy period, downward bias
Crude oil is chopping around after hitting off near resistance last week. Expectations are for WTI to continue to chop around, and if stocks weaken soon as expected then oil could come under pressure again. Watch support just above 49.
WTI Crude Oil Daily Chart (Choppiness expected)
For an intermediate-term fundamental and technical outlook check out the Crude Oil Forecast
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX