ActivTrades tools: Pivot Points Indicator

Support and resistance levels are basic in technical analysis, but it is something that we have to work with for the rest of our trading careers. We can determine support and resistance levels by picking the highs and lows or peaks and valleys, but there is an excellent tool called Pivot Points, which were originally created for pit traders to determine possible reversal levels. Now ActivTrades is offering the Pivot Point Indicator to its clients and anyone who would like to try it on a Demo account. Pivot Points help us pick support and resistance levels and usually helps us determine the daily trend for the instrument. Don’t miss out on this great tool. For more information, please visit the following link:

https://www.activtrades.com/en/pivot-points-indicator

Interesting pullback on the EUR/JPY

On the weekly chart of the EUR/JPY we can see that the pair has been in a well-defined bullish trend since it took off from the 112.00 zone, with some pullbacks along the way. On March of last year, the pair made a bearish retracement that took the price to the 115.00 level from where it bounces to the upside. This pair respects very well the technical levels and we can see how once it got to the 200 week EMA (blue line), it finds some temporary resistance there. However, the pair breaks above the 200 week EMA and accelerates its bullish momentum. After that we have two consolidation zones and the pair reaches the 137.51 level from where it retraces again. The current pullback has taken the EUR/JPY to the 55 week EMA (purple line) at the 129.92 level. Due to the fact that the EUR/JPY respects the technical levels, we could see a bounce to the upside from the 129.92 level, but if the pair continues falling, then the 200 week EMA at the 127.57 level could also act as support.

The Dollar rallies on the back of the FED

Today’s comments by the new FED chairman, Jerome Powell, has caused the Dollar to rally amid the possibility of higher interest rates. On the daily chart of the Dollar index we can see that the instrument has rallied really fast, but at the moment, the 90.46 level is acting as resistance as it did at the beginning of February. The 55 day EMA (purple line) may also contribute for that zona to become a resistance. Above the 55 day EMA, the 91, 92, or 93 levels may act as resistance to the 200 day EMA (blue line). To the downside, the 89.53 level may act as support, because the 200 month EMA is right at that level. The lows at the 88.14 level may also act as support.

Oil loses its bullish momentum

WTI oil has tried to back to its bullish trend since it bounced to the upside from the 58.00 level where we can also find the 200 week EMA. On the 58.00 level, the price of oil made a double bottom formation, which is a bullish reversal pattern. The price of WTI oil completed the double bottom formation and headed to the 55 day EMA (purple line), where a breakout and pullback pattern was formed. The commodity has also completed and confirmed the breakout and pullback pattern and that is why it has headed higher. However, once the price reached the 64.00 level, the bullish momentum died out. From the current level, WTI oil may try to pull back to the 61.00 level where we can find the 55 day EMA. To the upside, the 65.00 level may act as resistance, followed by the high at the 66.59 level.

Triangle formation on silver

On the daily chart of silver we can see that the commodity has been consolidating just below the 17.00 level and below its 200 day EMA (blue line). On the consolidation we can see that the price of silver has formed what it appears to be a symmetrical triangle or a bullish triangle, either way we must wait first for a breakout and a confirmation, because the price may break out in any direction. On the other hand, these triangle formations usually act as continuation patterns, therefore if the trend coming into the formation is bearish, then the price has a higher probability of breaking to the downside. The 16.00 level could act as its next support followed by the low at the 15.59 level. Above the 17.00 level, its next resistance could be the high at the 17.67 level.

WTI oil to the upside

Crude oil inventories out of the US have come out lower than expected causing the price of WTI oil to rally from the 61.00 level where we can find the 55 day EMA. On the daily chart we can see that the price has formed a breakout-pullback pattern precisely on the 61.00 level. In order for the breakout-pullback pattern to be confirmed, the next candle must also be bullish. The next resistance could be the 65.00 level, but for now the stochastics indicator has enough space before entering the overbought zone, therefore the price could continue rising. In order for WTI oil to go back to its bullish trend, the price must break above the 66.59 high. In case of a bearish breakdown below the 61.00 level, its next support could be the 58.00 level where we can find the 200 week EMA, followed by the 56.00 level where the 200 day EMA is right below it.

The Dollar stays bullish

The Dollar index has formed what it appears to be a double bottom formation as shown on the daily chart. The double bottom formation is a bullish reversal trend, therefore the Dollar index may try to change its direction to the upside. The two bottoms that made up the pattern are on the 88.14 level, from that zone the index has formed its neckline or confirmation line around the 90.46 level. In case the index keeps rising, if it breaks above the 90.46 level and above the 55 day EMA (purple line), then the double bottom formation will be confirmed. A little bit higher we can see the 200 day EMA (blue line) around the 93.00 level, which could also act as resistance. To the downside, the 88.14 zone could act as support, but below that level, the 87.00 could also act as support.