Welcome to Extreme Investor Network, where we provide unique insights and analysis on the Stock Market, trading, Wall Street, and more. Today, we are taking a closer look at the current market trends and potential trading opportunities based on moving averages and chart patterns.
Moving Averages Show Weakness:
The purple 20-Day MA has turned down, and the 200-Day line remains slanted down, indicating weakness in the market. The bearish momentum that kicked in recently has put lower targets at risk of being reached. By adding an internal upward sloping trendline to the chart, traders can use it as a guide, especially if the price zone around 78.6% is approached.
Trading Within Large Symmetrical Triangle Pattern:
Crude oil has been trading within a large symmetrical triangle pattern, with a bearish retracement currently in play. There is a potential for it to fall and test support at the lower line of the triangle. This increases the chance for a test of support around the internal uptrend line and the 78.6% retracement zone.
Bullish Monthly Reversal Remains Valid:
Despite short-term price behavior, gold triggered a bullish reversal on the monthly chart earlier in July. The bullish monthly signal remains valid, pointing to an eventual recovery in the price of gold and another challenge to recent highs. A breakout of the symmetrical triangle is anticipated, favoring a bullish breakout in the analysis.
If a bounce occurs before a new retracement low, traders should watch for potential resistance levels at the moving averages. Crude oil would face resistance at the 200-Day line, the 50-Day MA, and the 20-Day MA in sequence.
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