Rarely do we see such a clean inverted head and shoulders pattern. And, in addition to confirming the break of the major trendline, prices seem to confirm the break of the 200-day moving average. Also, a golden cross should not be long in coming. However, it is necessary to wait for the break of the neckline before buying; this week (heavy in publication) seems...
The economic context is bad: inflation; rising interest rates; war; possible recession; company figures that show a weakening; excessive rise of the US dollar...
From a contrarian point of view we can assume that the market has certainly already priced in all this news. Unless there is another bad surprise, prices should continue the rebound or at least stop...
Given the geopolitical context, inflation, rising rates and the bear market threatening the equity market, we are looking for a safe haven asset to protect ourselves: the US dollar. On this weekly chart of the USDCAD we see a big resistance which gives rise to a compression zone (ascending wedge). We could therefore imagine a LONG position on USD/CAD once this...
Given the geopolitical context, gas is likely to become increasingly scarce. In short, its price should supposedly increase.
However, technically, the price has a lot of chance to bounce back down: notably because of the SSB (Ichimoku) and the Fibonacci level.
We could then consider a purchase around the $4 area. After that the price should go back up and we...
Price under the pivot point, under the moving averages (50,100,200) and touching a technical resistance (Fibonacci). Momentum (RSI) under 50: so first target = short.
However, support zones around 113.450 and overall bullish trend : so second target = long.
Likely to form a shoulder head shoulder pattern
Bullish flag (hence target 1) but underlying trend is bearish
Momentum (RSI) below 50
Price below pivot point and moving averages (50, 100, 200)
Potential technical resistances (Fibonacci retracements)
