Hey Valutraders! Did you see this symmetrical pennant on Brent Crude?
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I’m Brad Alexander and in this week’s Market Blast Technicals let’s take a look at GBPUSD, USDCAD, Natural Gas, Gold (XAUUSD), and Brent Crude (UKOil).
Price action on Brent Crude has formed a Symmetrical Pennant.
In principle, we may consider this to be a bearish pattern as price action entered from above and the Stochastic Oscillator is turning down from overbought.
However, be careful that this doesn’t change and forms an ascending triangle.
In that case, it could be either bearish or bullish.
Last week we spotted this Descending Triangle on Gold.
Price Action broke through support and fell to this key level at $1958.
We see that the Stochastic Oscillator is oversold so we will wait for an overbought signal, price action to return to the upper trend line, or a break below, before selling, where the next key levels are at $1920 and $1812.
We now see a steady uptrend on Natural Gas with price action at the lower trend line and the Stochastic Oscillator turning up from oversold.
Coming out of this ranging market, price action reached the 161.8% Fibonacci Extension and returned to this level of support at 100%.
Please wait for confirmation before going long as we have had several hours of “nothing” in these candlesticks.
Yesterday we promised to look at USD pairs and we see USDCAD in this Ascending Triangle at $1.35.
We see clear weakness in USD with price action bouncing off lower trend lines.
Keep an eye on GBP as well with overall weakness except against the JPY and EUR.
GBPUSD, for example, is trending down but we need to see a break below this key level of support.
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