Moving average confluence on the Nasdaq

The Nasdaq has closed the week to the upside and is keeping a very good rally from almost two weeks ago. However, the 55 day and the 200 day exponential moving averages have been practically on the same level since the beginning of the week, around the 4327 area, which is an indication that the index may try to go into a consolidation. But if the index continues going higher, then its latest high around the 4442 could act as resistance. To the downside, there are no important support levels on the daily chart for the Nasdaq until the low at the 4041 level.

The EUR/NZD keeps its bearish correction

The Euro versus the New Zealand Dollar has been retracing to the downside after a big rally. The pair breaks below the 55 day exponential moving average (purple line), around the 1.7294 level, but it has found some support around the 1.6866 level. From this current zone, the pair may try to retrace to the 55 EMA, which in such case would be completing a breakout and retracement pattern, giving us a possible short entry. If the pair continues dropping, then the 200 day exponential moving average (blue line), around the 1.6422 level could act as support.

Bullish trend on sugar

The sugar contract for March of next year has kept a very good bullish trend as we can see on the daily chart. After it made a low at the 10.11 level, sugar rallied to the 11.00 zone to consolidate around that area for a few weeks. But the bullish momentum comes in again and the price breaks above the 12.00 level to go and visit the 200 day exponential moving average, around the 12.67 level where it tried to stall due to the fact that the zone had acted as a good resistance in the past. However, the price then breaks above that EMA and it rallies to the 14.00 level. The stochastics are around the 100% level, due to the strong rally that the price has made, but it is clearly over-bought and a bearish correction may come in from the current levels. None the less, if the price breaks above the 14.00 level, then its next resistance could be the 15.00 level.

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.

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