Corn stays consolidated

The March contract of corn has been consolidating between the 334.74 level and the 361.38 level. The 200 day exponential moving average has been acting as a resistance, even though in one occasion the price of corn broke above that level. There could be trading opportunities inside the range, but it is risky due to the fact that the price may break in any direction. The stochastics are coming close to the over-sold zone; therefore, the price may try to go and visit the 334.74. To the downside, the 320.00 level may act as its next support. To the upside, the 361.38 level may act as its next resistance if the price visits that level again.

GBP/JPY: Breaks 200 day EMA

The Pound versus the Yen has kept a very good bullish trend during the last few weeks as shown on the daily chart and breaks above the 200 day exponential moving average or 200 day EMA, which is currently around the 141.23 level. After breaking above the 200 day EMA, the pair makes a high around the 145.22 level where it stalls and tries to pull back. In case of a pullback, the pair may touch the 200 day EMA again and complete a breakout and pullback pattern. But if it breaks below the 200 day EMA, then the 137.00 level could act as support. Below the 137.00 level, its next support could be the 131.00 level. The stochastics are consolidating at the over-bought zone, because while the price may continue rallying, the indicator is not able to break above the 100% level, therefore it just goes sideways.

Death cross on gold

A few days ago we identified on the daily chart of gold that there could be a death cross in the coming days. A death cross is when the 55 day exponential moving average crosses below the 200 day exponential moving average with bearish implications in the longer term. Today we can see that the death cross has been confirmed, even though the price of gold has retraced to the upside. From the 1200.00 level, gold may bounce back down and continue with its bearish trend. If gold breaks below the 1170.90 level, then it may try to go and visit the 1100.00 level. On the other hand, gold may try to pull back a little bit higher and it if does, then it may try to visit the 1241.45 zone, which could act as resistance.

Good pullback on oil

WTI oil has made a good pullback to the 46.00 level as shown on the daily chart. Just below the 46.00 level we can see the 200 day exponential moving average, blue line, which may contribute along with the 46.00 level to prevent the price of oil to drop below it. Therefore, we could see a bounce to the upside. If the price bounces to the upside, then it may find resistance again at the 48.00 zone as it did recently. If the price continues rallying above the 48.00 level, then its next resistances could be the 50.00 level or the high at the 51.60. On the other hand, the price may also break below the 46.00 level and maybe try to visit the 44.00 or the 42.00 levels.

ActivTrades Event Follow Up: Tools & Trading Setups

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GBP/JPY: Visits the 200 day EMA

The 200 day exponential moving average or EMA usually acts as a good support or resistance zone. On the daily chart of the GBP/JPY we can see that the pair has reached its 200 day EMA, blue line, around the 141.19 level. The rally has been really steep; therefore, from the current level the pair may bounce to the downside and probably correct to the 139.00 level. A longer correction could take the pair to the 135.00 level. The bullish trend is still in place and that is why we could see a breakout of the 200 day EMA, which could take the pair to the 150.00 zone.

GBP/USD: Boxed between the 1.2300 & 1.2600

The Pound versus the Dollar consolidates between the 1.2300 level and the 1.2600 level, forming what it appears to be a symmetrical triangle. From this area the price may head in any direction, but we must keep in mind that in the longer term the bearish trend is still in place. A breakdown below the 1.2300 level could take the pair to the 1.2200 or the 1.2000 levels. To the upside, above the 1.2600 level, its next resistances could be the 1.2800 level or the 1.300 level.