Welcome to this week’s Market Blast Technicals.
I’m Brad Alexander and on behalf of Valutrades today we will take a look at USDJPY, USDCAD, WTI (US Oil), and the DJIA (US30).
Yesterday we pointed out an opportunity to buy the DJIA and we hope you took advantage.
The S&P 500 and the NASDAQ both have passed resistance and reached all-time highs but the DJIA still has room to move to the upside.
We can see from the 4-Hour chart that “Buying the Dip” is a good strategy with the ADX showing a strong uptrend, but the Stochastic Oscillator is showing overbought so you may want to wait for a pullback before going long.
Price action on WTI broke this descending triangle that we spotted last week and we now see price trying to break the upper trend line on the October contract.
ADX is showing us a strong uptrend but the Stochastic Oscillator is showing overbought so we may want to wait for a pullback here as well.
However, if we look at the Daily chart, we see this Bullish Engulfing Candle which covered the previous 2 days of price action, and a clear break of the upper trend line.
Yesterday we pointed out the strength of the Canadian Dollar and it seems to be a fundamental story with the price of Crude Oil and great Retail Sales figures helping CAD.
On USDCAD, for example, the Stochastic Oscillator is showing oversold but, should price action continue down, we have a key level in the $1.259 area.
We also note that this level is the 38.2% Fibonacci level.
And finally, we will be watching this Symmetrical Pennant on USDJPY but both the Stochastic Oscillator and ADX are giving us no clue on direction.
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That’s all for now. Happy trading with Valutrades and we will see you later in the week with our trading tips video.
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Disclaimer:
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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