Here are today’s directional views from our market research desk! These can be starting points for your own research to identify opportunities that suit your trading charts and trading style. Like what you see? Feel free to forward this to a friend!
Please note that the analysis presented in the charts below should not be considered investment or trading advice. They are for educational purposes only and you should consider seeking advice from an independent financial advisor.
Markets stop back on China unrest
US500 or S&P 500 index closed lower on Monday on the concerns of social unrest from China’s prolonged dynamic covid policy and restrictions. The S&P 500 dropped by -1.54% below the Pivot on the chart and towards the bottom support of the upward bullish channel. The Dow Jones Industrial Average went down by -1.45%, and the Nasdaq composite ended by -1.58%.
S&P 500 daily chart
US500 Daily Chart Directional bias - 1 Week
Trade Insights – US500 – Chart shows viable long positions above the pivot at 3983 with the target to test the key resistance Level at 4060 and then the test of the resistance zone between 4120 to 4140.
Alternatively, possible short positions below the pivot at 3983 heading towards the target of key support level at 3910 and then the further test of the support zone between 3830 to 3800.
XAU/USD – Interest Rate speculations in the US may give Gold a direction.
XAU/USD daily chart
Chart Analysis: The gold chart shows that the pair has moved up Major Pivot at $1745 and has recovered quite a bit of lost ground from yesterday when price dropped around $1740. Gold is trading well above the $1600 two-year low that was touched in late September. The speculations in the markets are quite strong now that the Feds will be forced to slow the pace of interest rate hikes.
The 20-day SMA is rising to provide support to the prices in the next sessions and the 50-day SMA is gradually rising too. The MACD line has moved downward and crossed below the orange signal line.
Please check the Chart Trading Insights below
Resistance Zone: $1800 to $1810
Key Resistance Level: $1785
Major Pivot Point: $1745
Key Support Level: $1728
Support Zone: $1700 to $1690
200 Day SMA – Green Line
50 Day SMA –Red Line
20 Day SMA –Blue Line
Daily Chart Directional bias - 1 Week
Trade Insights – XAU/USD
Chart shows viable long positions above the major pivot point at $1745 heading towards the first target of the key resistance level at $1785 and then testing of key resistance zone between $1800 to $1810.
Possible entry of long above below the major pivot at $1745.
Potential first-take profit could be at – $1785
Potential second take profit could be at – $1800 to 1810.
Alternatively, possible short positions below the major pivot point at $1745 with the target to test the key support level at $1728 then the test of the support zone between $1700 to $1690.
Possible entry for short trades below the major pivot point at $1745.
Potential first take profit could be at – $1772
Potential second take profit could be at – $1700
Potential third take profit could be at – $1690.
It is important to understand that the analysis is intended for educational purposes only. Traders are encouraged to use their own judgment and analysis when making trading decisions.
1. Identify the Balance Point on the chart – The Balance Point is a level on the chart that represents an equilibrium point between supply and demand. It can serve as a potential entry point for a trade. It’s important for the trader to determine whether the current price is above or below the Balance Point before making any trading decisions. 2. Wait for the price to approach potential profit levels – After entering a trade, it may be helpful to wait for the price to approach potential profit levels on the chart. These levels can be identified as areas where price reversals have occurred in the past. When the price approaches a potential profit level, it may be time to consider initiating further trades to test the next level of take profit limits.
3. Monitor the trade as the price hovers around the Balance Point – While the price is hovering around the Balance Point, it’s important to monitor the trade and make adjustments as necessary to ensure that it is still in line with market conditions. If market conditions change, it may be best to exit the trade.
4. Determine the market direction – Once a clear market direction has been established, the trader can set the trade with stop loss and take profit limits as they appear on the chart. It may also be helpful to consider using trailing stops to lock in profits and minimize potential losses. To determine the market direction, the trader may use technical analysis and other market indicators.
5. It’s important to remember that technical indicators, including the RSI, are not foolproof and can sometimes provide false signals. Therefore, it’s important to exercise caution when making trading decisions based solely on technical indicators. To make informed trading decisions, it’s recommended to use technical indicators in conjunction with other indicators and analysis
Disclaimer: The information provided does not constitute, in any way, a solicitation or inducement to buy or sell securities and similar products. Comments and analysis reflect the views of RockGlobal at any given time and are subject to change at any time. Moreover, they cannot constitute a commitment or guarantee on the part of RockGlobal. The recipient acknowledges and agrees that by their very nature any investment in a financial instrument is of a random nature and therefore any such investment constitutes a risky investment for which the recipient is solely responsible. It is specified that the past performance of a financial product does not prejudge in any way their future performance. The foreign exchange market and financial derivatives such as futures, CFDs (Contracts for Difference), warrants, turbos or certificates involve a high degree of risk. They require a good level of financial knowledge and experience. RockGlobal recommends the consultation of a financial professional who would have a perfect knowledge of the financial and patrimonial situation of the recipient of this message and would be able to verify that the financial products mentioned are adapted to the said situation and the financial objectives pursued. RockGlobal recommends reading the “Product Disclosure Statement” section of website for any financial product mentioned.
XAU/USD – Interest Rate speculations in the US may give Gold a direction.
Here are today’s directional views from our market research desk! These can be starting points for your own research to identify opportunities that suit your trading charts and trading style. Like what you see? Feel free to forward this to a friend!
Please note that the analysis presented in the charts below should not be considered investment or trading advice. They are for educational purposes only and you should consider seeking advice from an independent financial advisor.
Markets stop back on China unrest
US500 or S&P 500 index closed lower on Monday on the concerns of social unrest from China’s prolonged dynamic covid policy and restrictions. The S&P 500 dropped by -1.54% below the Pivot on the chart and towards the bottom support of the upward bullish channel. The Dow Jones Industrial Average went down by -1.45%, and the Nasdaq composite ended by -1.58%.
US500 Daily Chart Directional bias - 1 Week
Trade Insights – US500 – Chart shows viable long positions above the pivot at 3983 with the target to test the key resistance Level at 4060 and then the test of the resistance zone between 4120 to 4140.
Alternatively, possible short positions below the pivot at 3983 heading towards the target of key support level at 3910 and then the further test of the support zone between 3830 to 3800.
XAU/USD – Interest Rate speculations in the US may give Gold a direction.
Chart Analysis: The gold chart shows that the pair has moved up Major Pivot at $1745 and has recovered quite a bit of lost ground from yesterday when price dropped around $1740. Gold is trading well above the $1600 two-year low that was touched in late September. The speculations in the markets are quite strong now that the Feds will be forced to slow the pace of interest rate hikes.
The 20-day SMA is rising to provide support to the prices in the next sessions and the 50-day SMA is gradually rising too. The MACD line has moved downward and crossed below the orange signal line.
Please check the Chart Trading Insights below
Daily Chart Directional bias - 1 Week
Trade Insights – XAU/USD
Chart shows viable long positions above the major pivot point at $1745 heading towards the first target of the key resistance level at $1785 and then testing of key resistance zone between $1800 to $1810.
Possible entry of long above below the major pivot at $1745.
Potential first-take profit could be at – $1785
Potential second take profit could be at – $1800 to 1810.
Alternatively, possible short positions below the major pivot point at $1745 with the target to test the key support level at $1728 then the test of the support zone between $1700 to $1690.
Possible entry for short trades below the major pivot point at $1745.
Potential first take profit could be at – $1772
Potential second take profit could be at – $1700
Potential third take profit could be at – $1690.
It is important to understand that the analysis is intended for educational purposes only. Traders are encouraged to use their own judgment and analysis when making trading decisions.
1. Identify the Balance Point on the chart – The Balance Point is a level on the chart that represents an equilibrium point between supply and demand. It can serve as a potential entry point for a trade. It’s important for the trader to determine whether the current price is above or below the Balance Point before making any trading decisions.
2. Wait for the price to approach potential profit levels – After entering a trade, it may be helpful to wait for the price to approach potential profit levels on the chart. These levels can be identified as areas where price reversals have occurred in the past. When the price approaches a potential profit level, it may be time to consider initiating further trades to test the next level of take profit limits.
3. Monitor the trade as the price hovers around the Balance Point – While the price is hovering around the Balance Point, it’s important to monitor the trade and make adjustments as necessary to ensure that it is still in line with market conditions. If market conditions change, it may be best to exit the trade.
4. Determine the market direction – Once a clear market direction has been established, the trader can set the trade with stop loss and take profit limits as they appear on the chart. It may also be helpful to consider using trailing stops to lock in profits and minimize potential losses. To determine the market direction, the trader may use technical analysis and other market indicators.
5. It’s important to remember that technical indicators, including the RSI, are not foolproof and can sometimes provide false signals. Therefore, it’s important to exercise caution when making trading decisions based solely on technical indicators. To make informed trading decisions, it’s recommended to use technical indicators in conjunction with other indicators and analysis
Disclaimer: The information provided does not constitute, in any way, a solicitation or inducement to buy or sell securities and similar products. Comments and analysis reflect the views of RockGlobal at any given time and are subject to change at any time. Moreover, they cannot constitute a commitment or guarantee on the part of RockGlobal. The recipient acknowledges and agrees that by their very nature any investment in a financial instrument is of a random nature and therefore any such investment constitutes a risky investment for which the recipient is solely responsible. It is specified that the past performance of a financial product does not prejudge in any way their future performance. The foreign exchange market and financial derivatives such as futures, CFDs (Contracts for Difference), warrants, turbos or certificates involve a high degree of risk. They require a good level of financial knowledge and experience. RockGlobal recommends the consultation of a financial professional who would have a perfect knowledge of the financial and patrimonial situation of the recipient of this message and would be able to verify that the financial products mentioned are adapted to the said situation and the financial objectives pursued. RockGlobal recommends reading the “Product Disclosure Statement” section of website for any financial product mentioned.