Gold is trying to push above a long-term resistance zone but at risk of a pullback to develop soon. Crude oil is consolidating and building the right side of a bullish price sequence. U.S. indices are trading near resistance, with the Dow Jones near confluent resistance by way of a trend-line off the record high and 200-day MA. The DAX is trading around the 2011 trend-line but yet to turn lower and give shorts momentum.
Technical Highlights:
- Gold price around long-term resistance
- Crude consolidating, forming right side of inverse H&S
- Dow Jones near confluent resistance, DAX 2011 trend-line
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Gold price around long-term resistance
Gold has snuck itself above the 1305/10 zone, but in an extended state it may not stay there for long. Not that interested in being a bear despite thinking there will be a pullback simply because it is still in a strong upward trend. Looking lower the trend-line off the November low and Jan 4 high under 1300 may offer support on a pullback.
Gold Daily Chart (Resistance from last year)
For an intermediate-term fundamental and technical outlook check out the Gold Forecast
Crude consolidating, forming right side of inverse H&S
Crude oil continues to hang tough and possibly putting in the right shoulder of an inverse head-and-shoulders pattern. The symmetry of the H&S is leaving something more to be desired as both shoulders are rather shallow. However, a clean break above 54.48 should have crude pushing onward; a Feb 2016 trend-line test may come into view at some point.
WTI Crude Oil Daily Chart (Inverse H&S forming)
For an intermediate-term fundamental and technical outlook check out the Crude Oil Forecast
Dow Jones near confluent resistance, DAX 2011 trend-line
The Dow Jones is hanging tough despite being so far off the December low so fast. This smacks as a somewhat bullish development in the near-term, but it won’t take much of a push higher to have the index up against solid resistance by way of the trend-line off the record high and 200-day MA. From there a pullback looks likely to be in the works. Stay tuned, as price action could soon heat up…
Dow Daily Chart (t-line, 200-day combo)
For an intermediate-term fundamental and technical outlook check out the Global Equities Forecast
The DAX is hanging out around the 2011 trend-line, and while it is considered strong long-term resistance we have yet to see sellers show up in earnest. The channel off the December low is keeping the near-term bullish structure intact. A break of the lower parallel may do the trick in sending the German benchmark in reverse.
DAX Daily Chart (2011 t-line)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
