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Dow Jones, DAX, Gold Price Technical Outlook & More

Dow Jones, DAX, Gold Price Technical Outlook & More

2019-10-16 11:30:00
Paul Robinson, Currency Strategist
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The U.S. stock market recently shortly up losses that could have led to a much larger decline given where they were, and on that the indices could chop some more before making a sustainable move. The DAX is in breakout territory, but could use a rest before trading higher. Gold remains contained in a downward channel (potential bull-flag), this leaves the outlook negative near-term but still bullish longer-term.

Technical Highlights:

  • Dow Jones working on building a wedge formation
  • DAX in breakout territory, has support to watch on pullback
  • Gold remains near-term bearish, longer-term bullish

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Dow Jones working on building a wedge formation

The Dow Jones held off the breaking key support via the 200-day MA and neckline of a would-be head-and-shoulders that is basically off the table with the recent bounce severely denting the pattern’s integrity. This is bringing into play potential for another pattern, a wedge, built as a result of contracting price action since June.

Some more time will need to pass to make the pattern more complete, but could come in the not-too-distant future. For now, resistance coming from the top-side trend-line of the wedge could push the Dow lower, with the most significant support coming from the June trend-line and 200-day.

Dow Jones Daily Chart (rolling over)

Dow Jones, DAX, Gold Price Technical Outlook & More

Dow Jones Chart by TradingView

DAX in breakout territory, has support to watch on pullback

The DAX has put together an impressive run as of late, pushing the index beyond the January 2018 trend-line. This has price trading around the year high made in July. A pullback to solid support in the 12500/470 vicinity could offer an attractive spot for would-be longs to join in on a push towards higher resistance levels.

DAX Daily Chart (watch support around 12500/470)

Dow Jones, DAX, Gold Price Technical Outlook & More

DAX Chart by TradingView

Gold remains near-term bearish, longer-term bullish

Gold is currently trending lower, as evidence by the clear lower-lows and lower-highs in place since topping last month. Pressure is anticipated to remain, with support arriving at 1459/53, then the lower trend-line that makes up a would-be bull-flag. The bullish configuration could use some more time to build before garnering enough power to run gold through the 2011/12 levels it has had so much difficulty with. Bottom line, short-term bearish, but in time a bull-flag should give longs the upper hand again towards higher, possibly much higher levels.

Gold Price Daily Chart (stuck in channel/bull-flag)

Dow Jones, DAX, Gold Price Technical Outlook & More

Gold Price Chart by TradingView

Resources for Index & Commodity Traders

Whether you are a new or an experienced trader, DailyFX has several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, and trading guides to help you improve trading performance.

We also have a series of guides for those looking to trade specific markets, such as the S&P 500, Dow, DAX, gold, silver, crude oil, and copper.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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