Bullish breakout on Light Crude Oil

The OPEC chief has said today that a drop in oil investments could hurt oil production and this has caused oil to rally and breakout of the recent consolidation that it had as we can see on the daily chart of light crude oil. The price has finally broken above the 55 day exponential moving average and above the upper trendline that was forming the apparent descending triangle. The bullish momentum accelerates and the price reaches the 49.00 zone. It is possible for oil to continue going higher, but the 50.00 level could act as a temporary resistance on crude.

Consolidation continues on Light Crude Oil

Light crude oil or WTI continues in a tight consolidation with the 44.00 level acting as a very good support. To the upside, the 55 day exponential moving average (purple line) has acted as a good resistance, not allowing the price to break above that zone. The highs of the daily candles appear to be lower than the previous ones, forming what it appears to be a descending triangle. During a descending triangle formation the energy accumulates at the lower support line, making it more probable to break to the downside. If the price breaks below the 44.00 level, then the bearish momentum may take it to the 40.00 level. To the upside, the 50.00 level could act as a resistance.

Bullish flag on the AUD/USD

A bullish flag is a continuation chart formation where the price after having a bullish trend comes into an area of consolidation and forms a channel with a small inclination to the downside. It is called a bullish flag, because the price tends to continue going higher after it breaks out of the consolidation.

On the AUD/USD 4 hour chart we can see that the price has formed a bullish flag just below its 200 period exponential moving average (blue line). From this point on, if the price continues going higher it may find some resistance around that 200 period exponential moving average. But the price may also break to the downside and if it does so, the area of the 0.6936 level could act as support. The stochastics are pointing down due to the small inclination to the downside that the channel forming the flag has, but it could also change to the upside.

ActivTrades Exclusive Tools - SmartOrder 2

If you have a Live trading account with ActivTrades, you may take advantage of some excellent tools that ActivTrades has to offer completely free of charge. One of those tools is the SmartOrder 2 application that allows you to better manage your positions and assist you in your trading. With SmartOrder 2 you can close multiple positions at once, something that the MetaTrader 4 platform does not offer. Also, you can more easily set your take profit and stop loss levels in pips and you can open and close positions with one single click. Just visit the following site and try it for yourself.

https://www.activtrades.co.uk/index.aspx?page=platforms_smartorder

Don’t miss out on this great opportunity to take your trading to a whole different level and start trading with more ease.

Bearish channel on the FTSE100

The FTSE100 index of the United Kingdom has retraced to the upside today, but we can see that it is actually inside a bearish channel. From the current level the index may try to go back down and visit the lower trendline of the channel as we can see on the daily chart. To the downside there are two levels that could act as support, the first one is the 5846 and the second one is the 5760. However, if the index breaks to the upside, then it could try to go and visit the high at the 6267 level where we can also see the 55 day exponential moving average (purple line), which could act as resistance.

The GBP/USD continues much undecided

The Pound versus the Dollar stays in a range between the 1.5127 as support and the 1.5241 as resistance. The current consolidation seems to be a resting zone for the pair to continue going lower, but for the pair to continue with its bearish trend, this week’s fundamentals out of the US should come out better than expected and the Dollar should strengthen. Actually, there is no clear trend until the pair breaks above the 1.5300 level, which could mean a possible bullish retracement or below the 1.5100 level, which could confirm a continuation of its bearish trend.

Bearish continuation on coffee

Coffee has stayed in a bearish trend with a recent low around the 114.55 level as we can see on the daily chart. Even though the price tried to break above the Parabolic SAR points, it actually came back down and it could try to visit the 114.55. To the upside, the commodity seems to have found a good resistance around the 125.70 level and a breakout above that zone could take the price all the way to its most recent high around the 140.87 level in the medium term.