WTI Crude Oil chart
The following comment was made in the previous post on the daily bar chart pattern of WTI Crude Oil: "Falling volumes during the technical bounce may encourage bears to defend the 200 day EMA vigorously."
Oil's price dropped below its 50 day and 20 day EMAs, but bounced up after receiving support from the 56 level. After crossing above all three EMAs into bull territory, oil's price formed a small 'reversal day' bar (higher high, lower close) and pulled back to its 200 day EMA.
Daily technical indicators are in bullish zones. MACD is rising above its signal line. RSI is above its 50% level but showing slight downward momentum. Slow stochastic re-entered its overbought zone, but is slipping down.
Bears are giving ground grudgingly. Oil's price has formed a bullish pattern of 'higher tops, higher bottoms' after forming a 'double bottom' reversal pattern inside the support zone between 50 and 52. A convincing price move above 67 is necessary if bulls are to regain control of the chart.
On longer term weekly chart (not shown), oil's price managed to close just above its 200 week EMA in long-term bull territory. Weekly technical indicators are in neutral zones, and not showing much upward momentum. Falling volumes during the recent rally should be a concern for bulls.
Brent Crude Oil chart
The daily bar chart pattern of Brent Crude Oil dropped below its 20 day EMA into bear territory, but bounced up after receiving good support from the 62 level.
Oil's price rallied past its 20 day and 50 day EMAs, only to face strong resistance from its 200 day EMA. Strong volumes on recent down days show that bears are active.
Daily technical indicators are looking neutral to bullish. MACD is rising above its signal line in neutral zone. RSI is moving sideways above its 50% level. Slow stochastic re-entered its overbought zone, but is falling down. Some more consolidation is likely.
Bears are giving bulls a hard time. Oil's price has formed a bullish pattern of 'higher tops, higher bottoms' after forming a 'double bottom' reversal pattern inside the support zone between 58 and 60. A convincing price move above 75 is required for bulls to regain control of the chart.
On longer term weekly chart (not shown), oil's price closed above its 200 week and 20 week EMAs, but just below its 50 week EMA in long-term bull territory. Weekly technical indicators are looking neutral to bullish. MACD is below its sliding signal line in neutral zone. RSI is facing resistance from its 50% level. Slow stochastic is rising towards its 50% level.
Gold chart pattern
The following comment appeared in the previous post on the daily bar chart pattern of Gold: "The past 2 months' trading has formed the 'handle', which itself is looking like a 'falling wedge' from which the likely breakout is upwards."
Note that gold's price twice dropped below its 200 day EMA into bear territory, but formed a small 'double bottom' reversal pattern. That triggered a technical bounce that has broken out above the 'falling wedge' (which is the 'handle' of a 'cup and handle') pattern.
A strong volume surge accompanied the upward break out - validating it technically. Gold's price managed to close above the 1300 level, and well above its three EMAs in bull territory after a month.
Daily technical indicators are looking bullish. MACD is rising above its signal line in bearish zone. RSI is climbing above its 50% level. Slow stochastic has entered its overbought zone, and can trigger a pullback towards the top of the 'wedge'.
After touching a high of 98.10 on Apr 26 - its highest level in 2 years - the US Dollar index dropped to a low 96.80 on May 13. Gold's price usually moves in the opposite direction to the Dollar index.
On longer term weekly chart (not shown), gold’s price bounced up after receiving support from its 200 week EMA, and closed above its three weekly EMAs in long-term bull territory. Weekly technical indicators are giving conflicting signals. MACD is moving sideways below its falling signal line in bullish zone. RSI is rising above its 50% level. Slow stochastic has emerged from its oversold zone, and can trigger a rally.
Silver chart pattern
The daily bar chart pattern of Silver had formed a 'double top' reversal pattern back in Feb '19, and has been in a down trend (marked by purple trend line) since then.
A couple of recent attempts to break out above the trend line and the falling 20 day EMA have come to nought. Silver's price is trading below its three falling EMAs in a bear market.
A silver lining for bulls is the formation of a small 'double bottom' reversal pattern near the 14.60 level. Whether the support at 14.60 holds or not remains to be seen.
Daily technical indicators are in bearish zones, and not showing any upward momentum. MACD has merged with its signal line. RSI is moving sideways below its 50% level. Slow stochastic has dropped below its 50% level after briefly moving above it.
On longer term weekly chart (not shown), silver's price is trading below its three falling weekly EMAs in a long-term bear market. Weekly technical indicators are in bearish zones and showing downward momentum - suggesting some more correction.
S&P 500 index chart pattern
The following remark was made in last week's post on the daily bar chart pattern of S&P 500: "Another likely breach of the 200 day EMA can lead to a fall towards the lower edge of the support zone."
The fall below the 200 day EMA was steeper than expected. On Fri. Oct 26, the index touched an intra-day low of 2628 and closed 30 points below the 61.8% Fibonacci retracement level of 2689. The strong volumes indicate that the index may fall lower.
The index is trading well below its three falling EMAs in bear territory. It seems that the entire 'Trump rally' - from the small 'double bottom' reversal pattern formed during Jan-Feb '16 to the 'double top' reversal pattern formed during Sep-Oct '18 - is facing correction, with a possible drop to the zone between 2400 and 2500.
Daily technical indicators are looking bearish and oversold. MACD is falling deeper inside its oversold zone. RSI is about to re-enter its oversold zone. Slow stochastic has re-entered its oversold zone. RSI and Slow stochastic are showing positive divergences by not falling lower with the index. A likely technical bounce may face more selling by bears.
On longer term weekly chart (not shown), the index closed below its 20 week and 50 week EMAs but well above its 200 week EMA in a long-term bull market. Weekly technical indicators are showing downward momentum. MACD is falling below its signal line in bullish zone. RSI is falling below its 50% level. Slow stochastic is about to enter its oversold zone.
FTSE 100 index chart pattern
The following comment appeared in last week's post on the daily bar chart pattern of FTSE 100: "Bulls needn't get too excited, as the index appears to be forming a bearish 'flag' pattern."
The index faced resistance from its falling 20 day EMA and then broke out below the bearish 'flag' (shaded) to touch an intra-day low of 6852 on Fri. Oct 26 - breaching its Mar 26 low - before recovering to close at 6940.
Daily technical indicators are correcting oversold conditions. MACD has crossed above its falling signal line in bearish zone, and seems to be forming a bullish 'rounding bottom' pattern. RSI and Stochastic have emerged from their respective oversold zones. A technical bounce is likely. (At the time of writing this post, the index is trading 90 points higher.)
On longer term weekly chart (not shown), the index closed below its three weekly EMAs in long-term bear territory. Weekly technical indicators are looking bearish. MACD is falling below its signal line in bearish zone. RSI has emerged from its oversold zone. Stochastic is trying to do the same.
FIIs were net sellers of equity on all three trading days this week. Their total net selling was worth Rs 29 Billion. DIIs were net buyers on all three days. Their total net buying was worth Rs 22.9 Billion, as per provisional figures.
The net direct tax collection in India grew by 15.7% to Rs 4.89 Trillion YoY during the period Apr - Oct 3rd week, 2018 - meeting 42.5% of the full fiscal year target of Rs 11.5 Trillion.
Tight monetary conditions for NBFCs may soon begin to hit the economy as funds for consumption and investment are slowly getting squeezed. Sale of motorcycles, tractors, plywood and cement have slowed in the past few weeks.
The daily bar chart pattern of Nifty touched an intra-day low of 10102 on Tue. Oct 23 - its lowest level since Mar 28 '18. All gains made during Apr-Aug '18 got wiped out during Sep-Oct '18. The index is trading well below its three falling EMAs in bear territory.
Daily technical indicators are in bearish zones, and are not showing any upward momentum. MACD is facing resistance from its falling signal line inside its oversold zone. RSI is getting support from the edge of its oversold zone. Slow stochastic has re-entered its oversold zone.
Note that all three indicators showed positive divergences by touching slightly higher bottoms, when the index dropped lower. That may have triggered today's upward bounce. Is it possible that the index has formed a small 'double bottom' reversal pattern?
Technically, such a pattern will get confirmation only if Nifty manages to rally past its Oct 17 top of 10710 (where it had faced strong resistance from its falling 20 day SMA and had dropped towards the lower Bollinger Band). The odds for such a rally doesn't favour bulls.
Nifty's TTM P/E has moved down to 24.60, but still remains higher than its long-term average. The breadth indicator NSE TRIN (not shown) is moving down in neutral zone, suggesting some near-term upside.
Oil's price has come down from lofty levels and Rupee's fall against the US Dollar has temporarily stalled. That has provided brief respite to bulls. But FIIs are still in exit mode - so, more downside is likely.
WTI Crude Oil chart
The daily bar chart pattern of WTI Crude Oil received twin support from its 20 day and 50 day EMAs and rose to touch a 52 week high of 75.91 on Oct 2, but formed a small 'reversal day' bar (higher high, lower close).
All three EMAs are rising, and oil's price is trading above them in a bull market. Trump's exhortation to OPEC to hike production and put a lid on oil's price appears to have fallen on deaf ears.
Daily technical indicators are looking quite overbought, and can trigger a correction. Note the 'double bottom' reversal pattern on Slow stochastic that preceded the recent rally.
On longer term weekly chart (not shown), oil's price closed above its three weekly EMAs in long-term bull territory. Weekly technical indicators are looking bullish and showing upward momentum.
Brent Crude Oil chart
The daily bar chart pattern of Brent Crude Oil received good support from its 20 day EMA and soared to a 52 week high of 85.45 on Oct 1, before closing a bit lower.
All three EMAs are rising, and oil's price closed above them in a bull market. The almost vertical rally during the past two weeks is unsustainable. A correction may follow.
Daily technical indicators are inside their respective overbought zones. A pullback towards 80 is a possibility.
On longer term weekly chart (not shown), oil's price closed above its three rising weekly EMAs in long-term bull territory. Weekly technical indicators are looking bullish and overbought - hinting at a pullback.
S&P 500 index chart pattern
On Jul 25, the daily bar chart pattern of S&P 500 had partly filled the 13 points downward 'gap' formed on Jan 30. Bear resistance led to a brief correction.
The index received twin support from its rising 20 day EMA, and the support/resistance zone between 2780 and 2800. Formation of a small 'double bottom' reversal pattern led to a technical bounce.
The index closed at 2840 - just inside the 'gap' and above its three rising EMAs in a bull market. A convincing move (i.e. accompanied by strong volume support) above the 'gap' is required for the index to rise to new highs.
Daily technical indicators are looking bullish. MACD is trying to cross above its signal line. RSI and Slow stochastic are showing upward momentum. Bears are likely to put up a fight to defend the 'gap', but may be on the verge of getting vanquished.
On longer term weekly chart (not shown), the index closed above its three rising weekly EMAs in a long-term bull market. Weekly MACD and RSI are rising in bullish zones. Slow stochastic is showing negative divergence by moving sideways inside its overbought zone.
FTSE 100 index chart pattern
After touching a lifetime high of 7903.50 on May 22 '18, the daily bar chart pattern of FTSE 100 had been consolidating sideways and appeared to be forming a 'saucer' or a 'cup and handle' pattern.
Sharp corrections on Wed. & Thu. (Aug 1 & 2) dropped the index below its 20 day and 50 day EMAs, which may have negated both those patterns. The index is trading above its rising 200 day EMA in a bull market.
Daily technical indicators are looking neutral to bearish. MACD and RSI are in neutral zones and showing slight downward momentum. Stochastic has fallen below its 50% level after forming a 'triple top' reversal pattern inside its overbought zone.
Expect the consolidation to continue for some time. A test of support from the 200 day EMA is also a possibility.
On longer term weekly chart (not shown), the index closed above its three rising weekly EMAs in a long-term bull market. Weekly MACD has crossed below its signal line in bullish zone. RSI is falling in bullish zone. Slow stochastic has dropped below its 50% level.
S&P 500 index chart pattern
The following comment was made in last week's post on the daily bar chart pattern of S&P 500: "Expect the falling 20 day and 50 day EMAs to provide resistance if the index tries to rally."
After falling and closing below its 200 day EMA for the second time in 6 trading sessions on Mon. Apr 2, the index attempted a rally during the next three days and moved above 2670 intra-day on Thu. Apr 5.
Resistance from the falling 20 day EMA prevented the rally from progressing further. More trade sanctions against China announced by Trump was just the excuse bears needed to sell.
On Fri. Apr 6, the index fell sharply below its 200 day EMA intra-day, but bounced up to close just above it - losing about 1.4% on a weekly closing basis.
Daily technical indicators have corrected oversold conditions, but remain in bearish zones and are not showing any upward momentum. Bulls are desperately trying to defend the 200 day EMA. The volume bars show that their resolve is weakening.
Some technical experts have suggested that the index has formed a 'double bottom' reversal pattern, and the correction is over. Is it? Trading volumes suggest otherwise.
Volumes during formation of the first bottom (at 2533 on Feb 9) were much higher than on Apr 2, when the index touched the second bottom of 2554. For a 'double bottom' to be technically valid, volumes during formation of the second bottom should be higher.
On longer term weekly chart (not shown), the index fell below its 50 week EMA intra-week, but managed to close above its 50 week and 200 week EMAs in a long-term bull market. Weekly technical indicators are looking bearish and showing downward momentum.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 rallied past its falling 20 day EMA and the resistance level of 7100 during the week. Oversold weekly technical indicators may have triggered the rally.
Twin resistances from the falling 50 day EMA and the 7200 level brought the rally to a halt. Though the index closed below 7200, it gained 1.8% on a weekly closing basis. (At the time of writing this post, the index is struggling to cross above 7200.)
Daily MACD and RSI are showing upward momentum in bearish zones. Slow stochastic has entered its overbought zone, which is a bearish sign. Some consolidation between 7100 and 7200 is possible.
The 'death cross' (marked by blue circle) of the 50 day EMA below the 200 day EMA had technically confirmed a bear market. Bears will continue to 'sell on rise'.
On longer term weekly chart (not shown), the index closed above its 200 week EMA, but below its 20 week and 50 week EMAs. The 20 week EMA has crossed below the 50 week EMA after 20 months. Weekly technical indicators are correcting oversold conditions.
Gold chart pattern
The following remark was made in the previous post on the daily bar chart pattern of Gold: "Any attempt at a rally will induce bear selling."
Gold's price did rally above its 20 day and 50 day EMAs - touching an intra-day high of 1342 on Wed. Mar 7, but closed much lower to form a 'reversal day' bar (higher high, lower close).
That was a trigger for bears to wrest control. Gold's price consolidated sideways till Mar 15, and tested support from the 'support/resistance zone' on Fri. Mar 16.
On Mon. Mar 19, gold's price dropped inside the 'support/resistance zone' but bounced up to close higher - forming another 'reversal day' bar (lower low, higher close), as bulls fought back.
Daily technical indicators are in bearish zones, and not showing any upward momentum. The 'support/resistance zone' has withstood three tests in the past 5 weeks, but may get breached on a subsequent test.
The US Dollar index has been consolidating sideways during Mar '18 - which may explain why gold's price has gone nowhere.
On longer term weekly chart (not shown), gold’s price closed above its three weekly EMAs in long-term bull territory. Weekly technical indicators are in bullish zones, but showing downward momentum. Some more correction or consolidation is likely.
Silver chart pattern
The formation of a 'double bottom' reversal pattern in the previous post on the daily bar chart pattern of Silver was expected to lead to a technical bounce.
The technical bounce did occur and took silver's price all the way up to its sliding 200 day EMA, which provided strong resistance. Bears jumped in with their successful 'sell on rise' strategy.
Silver's price dropped to close below its three EMAs in bear territory, but has bounced up from the support zone between 16.10 & 16.20.
Daily technical indicators are in bearish zones and showing downward momentum. Bulls have defended the support zone well - but for how much longer?
On longer term weekly chart (not shown), silver’s price closed below its three sliding weekly EMAs in a long-term bear market. Weekly technical indicators are showing downward momentum in bearish zones.
S&P 500 index chart pattern
The following remark was made in last week's post on the daily bar chart pattern of S&P 500: "It may be a bit early for bulls to start celebrating."
The index rose past its Feb 27 top of 2789 to touch an intra-day high of 2802 on Tue. Mar 13 but closed much lower, forming a 'reversal day' bar that triggered a pullback to the top of the 'triangle'.
The index touched an intra-day low of 2741 on Thu. Mar 15, but bounced up to close just above the 2750 level on Fri. Mar 16 - forming an 'inverted hammer' candlestick. The accompanying volume surge is often a sign of trend reversal.
Daily technical indicators are in bullish zones but not showing any upward momentum. MACD is moving sideways above its signal line. RSI is trying to rise after receiving support from its 50% level.
Slow stochastic is showing negative divergence by touching a lower top and forming a 'double top' reversal pattern inside its overbought zone. Bears may try to press home their advantage.
The index is trading well above its rising 200 day EMA in a long term bull market. However, the sharp volatility during the past 6 weeks should be treated with caution.
On longer term weekly chart (not shown), the index formed a weekly 'reversal' bar and closed above its three weekly EMAs in a long-term bull market. Weekly technical indicators are in bullish zones but not showing any upward momentum.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 failed to overcome resistance from its falling 20 day EMA, and dropped below the long-term 'support/resistance' level of 7200.
The index is trading below its three EMAs in a bear market that was technically confirmed by the 'death cross' (blue circle) of the 50 day EMA below the 200 day EMA.
Daily technical indicators are showing upward momentum. However, all three are in bearish zones. (At the time of writing this post, the index is trading below 7100.)
The 'double bottom' pattern may get tested.
On longer term weekly chart (not shown), the index closed below the support level of 7200. It remains below its 20 week and 50 week EMAs but above its 200 week EMA in a long-term bull market. Weekly MACD and Slow stochastic are inside their oversold zones. RSI is falling below its 50% level.
WTI Crude Oil chart
After forming a small 'double bottom' at 58 last month and rallying to 64 (refer previous post), the daily bar chart pattern of WTI Crude Oil faced strong resistance from the (purple) down trend line.
Since then, oil's price has been oscillating about its 20 day and 50 day EMAs - forming a bearish pattern of 'lower tops, lower bottoms'. The Feb '18 low of 58 has not been tested yet - keeping bullish hopes alive.
Oil's price closed below its 20 day and 50 day EMAs, but well above its rising 200 day EMA in a bull market. Daily technical indicators are in bearish zones - hinting at some more downside.
Surging US output on the back of onshore shale oil production is keeping a lid on oil's price.
On longer term weekly chart (not shown), oil's price closed above its three weekly EMAs in long-term bull territory. Weekly technical indicators are in bullish zones but showing downward momentum.
Brent Crude Oil chart
The daily bar chart pattern of Brent Crude Oil had formed a small 'double bottom' reversal pattern at 61.76 last month and rallied to 67.90, only to face strong resistance from the (purple) down trend line.
Oil's price has dropped below its entangled 20 day and 50 day EMAs, but is trading well above its rising 200 day EMA in a bull market.
Daily technical indicators are in bearish zones, and not showing any upward momentum. Some more correction or consolidation below the down trend line is likely.
On longer term weekly chart (not shown), oil's price closed above its three weekly EMAs in long-term bull territory. Weekly MACD and RSI are showing downward momentum in bullish zones. Slow stochastic is in bearish zone.
S&P 500 index chart pattern
The daily bar chart pattern of S&P 500 rallied above its 20 day and 50 day EMAs after forming a 'reversal day' bar (lower low, higher close) on Mar 2.
On Fri. Mar 9, the index formed an upward 'gap' of 11 points and rose to close at the highest point of the day (2786.57). In the process, the index appears to have broken out above a large 'triangle' pattern.
It may be a bit early for bulls to start celebrating. Last week's rally was accompanied by sliding volumes. Also, the index needs to move convincingly above the Feb 27 top of 2789 for bulls to regain control.
Daily technical indicators are looking bullish. MACD has entered positive territory above its signal line. RSI has moved above its 50% level. Slow stochastic has bounced up from its 50% level.
Trump's import tariff on steel and aluminium may evolve into a global trade war, as the EU has threatened to retaliate. That will not be a desirable outcome for the global economy and stock markets.
On longer term weekly chart (not shown), the index closed above its three weekly EMAs in a long-term bull market. Weekly technical indicators are in bullish zones. MACD is below its signal line. RSI and Slow stochastic are showing upward momentum.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 shows bulls are fighting back. By touching a slightly lower intra-day low of 7062 on Mar 5 and forming a 'reversal day' bar (lower low, higher close), the index appears to have formed a 'double bottom' reversal pattern.
The subsequent rally took the index above the long-term 'support/resistance' level of 7200, where the falling 20 day EMA is providing resistance.
The 'death cross' of the 50 day EMA below the 200 day EMA has technically confirmed a bear market. Bulls have a lot of work left to regain any control.
The Feb 27 top of 7326 is the first hurdle that needs to be crossed. Only then will the 'double bottom' pattern receive technical confirmation.
Daily technical indicators are turning bullish. MACD has crossed above its signal line in bearish zone. RSI is trying to move up in bearish zone. Slow stochastic has crossed above its 50% level to enter bullish zone.
On longer term weekly chart (not shown), the index appears to have formed a 'double bottom' reversal pattern and closed above 7200. It remains below its 20 week and 50 week EMAs but above its 200 week EMA in a long-term bull market. Weekly MACD and Slow stochastic are sliding down inside their oversold zones. RSI is falling below its 50% level.
Gold chart pattern
Note the following comments from the previous post on the daily bar chart pattern of Gold: "The first technical confirmation of a 'double top' - lower volumes during formation of the second top - has been received. The second technical confirmation - a fall below the 'valley' low of 1309 touched on Feb 8 - is awaited."
The second technical confirmation was received when gold's price touched an intra-day low of 1303.60 on Mar 1, and closed at 1305.20. The downward target of the 'double top' pattern is 1255. Will gold's price fall there?
The possibility can't be ruled out. The US Dollar index has bounced up after forming a 'double bottom' at 88.50 (on a closing basis). If the Dollar index continues to recover, gold's price should move down.
Note that the 'support/resistance zone' between 1300 & 1310 provided good support, helping gold's price to bounce up. The rising 200 day EMA will be defended strongly by bulls in case gold's price falls below 1300.
Daily technical indicators are in bearish zones, and not showing much upward momentum. Any attempt at a rally will induce bear selling.
On longer term weekly chart (not shown), gold’s price closed above its three weekly EMAs in long-term bull territory, but has formed a 'double top' reversal pattern. Weekly technical indicators are in bullish zones, but showing downward momentum. Some more correction is possible.
Silver chart pattern
The following comment was made in the previous post on the daily bar chart pattern of Silver: "Expect bears to 'sell on rise'."
So they did. Silver's price faced strong resistance from its falling 50 day EMA and closed below its three EMAs in bear territory.
However, by touching a low of 16.10 on Mar 1, silver's price has formed a 'double bottom' reversal pattern which can lead to a technical bounce.
Daily technical indicators are in bearish zones, but showing neither upward nor downward momentum. Some sideways consolidation is likely before bears take complete control.
On longer term weekly chart (not shown), silver’s price closed below its three weekly EMAs in a long-term bear market. Weekly technical indicators are sliding down in bearish zones.
WTI Crude Oil chart
A pullback towards the 50 day EMA was expected in the previous post on the daily bar chart pattern of WTI Crude Oil due to oversold technical indicators and formation of an 'inverted hammer' candlestick.
Oil's price formed a small 'double bottom' reversal pattern at 58 that turned the expected pullback into a rally. Oil's price rose above its 50 day and 20 day EMAs to the 64 level in bull territory.
Daily technical indicators have turned bullish. MACD has crossed above its signal line and entered bullish zone. RSI has crossed above its 50% level. Slow stochastic is rising towards its overbought zone.
A convincing move above the (purple) down trend line is required if bulls wish to regain control of the chart. However, in a recent forbes.com article, Art Berman has given logical explanations why oil prices are at a crossroads and can settle in the 55-65 range.
On longer term weekly chart (not shown), oil's price closed above its three weekly EMAs in long-term bull territory. Weekly technical indicators are in bullish zones after correcting overbought conditions. Only Slow stochastic is showing upward momentum. Some more upside is likely.
Brent Crude Oil chart
The daily bar chart pattern of Brent Crude Oil touched an intra-day low of 61.76 on Feb 13 - forming a small 'double bottom' reversal pattern that triggered a pullback towards the converging 20 day and 50 day EMAs.
The pullback turned into a rally. Oil's price climbed into bull territory above its three EMAs, and managed to close above the (purple) down trend line. However, sliding volumes do not augur well for sustainability of the rally.
Daily technical indicators are looking bullish. MACD has crossed above its signal line in bearish zone. RSI has moved above its 50% level. Slow stochastic is rising towards its overbought zone, and can limit further upside.
On longer term weekly chart (not shown), oil's price closed above its three weekly EMAs in long-term bull territory. Weekly technical indicators have corrected overbought conditions. Only Slow stochastic is showing some upward momentum.
Gold chart pattern
The daily bar chart pattern of Gold corrected below its 20 day and 50 day EMAs, but received good support from the 'support/resistance' zone between 1300 & 1310.
The overbought Slow stochastic indicator triggered a sharp pullback rally that touched a slightly lower top of 1364.40 on Fri. Feb 16. Formation of a long-legged doji candlestick pattern indicates hesitation among bulls and bears.
Gold's price appears to have formed a 'double top' reversal pattern inside the resistance zone between 1360 & 1380. The first technical confirmation of a 'double top' - lower volumes during formation of the second top - has been received.
The second technical confirmation - a fall below the 'valley' low of 1309 touched on Feb 8 - is awaited. (At the time of writing this post, gold's price has slipped down to 1340.)
Daily technical indicators are in bullish zones. MACD has crossed above its signal line. Slow stochastic has risen well inside its overbought zone. RSI is showing negative divergence by sliding down as gold's price rose higher on Feb 16.
Another fall towards the 'support/resistance' zone between 1300 & 1310 is possible. Gold's price is trading above its three EMAs in a bull market. Bulls are likely to 'buy the dip' again.
On longer term weekly chart (not shown), gold’s price closed above its three weekly EMAs in long-term bull territory, but may have formed a 'double top' reversal pattern. Weekly technical indicators are in bullish zones, but not showing much upward momentum. Slow stochastic has dropped from its overbought zone.
Silver chart pattern
The daily bar chart pattern of Silver corrected to an intra-day low of 16.13 on Feb 9. Overbought Slow stochastic and a small 'double bottom' reversal pattern on RSI led to a pullback rally.
The rally failed to overcome strong resistance from the 200 day EMA. Silver's price closed below its three EMAs in bear territory.
Daily technical indicators are looking neutral to bearish. MACD has moved up towards its signal line in bearish zone but has not been able to cross above it. RSI and Slow stochastic are facing resistances from their respective 50% levels.
Expect bears to 'sell on rise'. (At the time of writing this post, silver's price has slipped down to 16.44.)
On longer term weekly chart (not shown), silver’s price closed below its three weekly EMAs in a long-term bear market. Weekly technical indicators are in bearish zones.
