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Natural Gas (NatGas) in Falling Wedge. DAX (DE40) Reversal? GBPUSD in Rising Wedge.

   

Hey Valutraders!  Did you see this Falling Wedge on Natural Gas today?

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I’m Brad Alexander and in this week’s Market Blast Technicals let’s take a look at NZDCAD, GBPUSD, the FTSE (UK100), the DAX (DE40), and Natural Gas (NatGas)

Despite the threats from dictators, supply problems and pipeline sabotage, the price of Natural Gas is still falling but price action is forming a Falling Wedge heading into winter.Screenshot 2022-10-04 at 19.28.59

MACD is still bearish though but the signal line could pop out at any time.Screenshot 2022-10-04 at 19.29.10

We also see key Fibonacci levels on the daily chart with support at the 61.8% level and key levels above at the 50% level so watch for the bounce to the upside or a break to the downside.

Yesterday we promised to take a look at the indices from a technical standpoint so let’s start with the DAX where we may have a reversal.Screenshot 2022-10-04 at 19.29.29

On the daily chart we can see an inverted hammer and price action unsuccessfully trying to break this level of support at 11800.

Also, the Stochastic Oscillator is still moving up and we are waiting for the signal line on MACD to move out of the bearish histogram.

Also, the Parabolic SAR has changed from bearish to bullish.

As we noted yesterday, the FTSE index of the top UK companies bounced off support and is heading higher.

However, watch out for this upper trend line and the stochastic oscillator is overbought.

Also, from the fundamental standpoint, with GBP getting stronger, the FTSE may fall back to support at around 6800.Screenshot 2022-10-04 at 19.29.57

Speaking of GBP, the recovery we looked at yesterday is still in progress with many pairs breaking levels of resistance.Screenshot 2022-10-04 at 19.30.07

If we look specifically at GBPUSD, we see price action forming this Rising Wedge, which is a bearish pattern.

Also, the Stochastic Oscillator, which had been quite bullish, is now quite overbought and about to turn down.Screenshot 2022-10-04 at 19.30.21

We are waiting for tomorrow’s New Zealand Interest Rate decision to see if the news drives price action to the upper trend line on NZDCAD, for example.

If so, the downtrend could continue however, a big number could see price action break the trend line and continue higher. 

Thanks for watching and don’t forget to subscribe to Valutrades Signals and the link will be in this video’s description below.

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That’s all for now.  Happy trading with Valutrades and we will see you next time.

CFDs and FX are leveraged products and your capital may be at risk.4 October 2022 Technicals EN TN

 

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The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.

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