Gold has been in a sideways consolidation for over four months, with erratic movements making it challenging to predict the next move. On the daily chart, moving averages are flatlining, and we see a negative divergence with the slow stochastics trending downward, indicating a possible downturn at the start of this week.
Similarly, the Emini S&P futures show an upward price trendline, but again, we have a negative divergence on the slow stochastic. The market is hovering just above the 100-day moving average—a crucial level that could dictate the direction for the week.
In the Nasdaq, I'm watching a potential bear flag formation within a consolidation channel. We’re approaching long-term resistance, marked by a two-year-old trendline and Fibonacci levels, suggesting that downside risks are significant.
My bias leans bearish for both the S&P and Nasdaq this week.
Emini S&P September futures
- Emini S&P retests strong resistance at 5350/5360 (US500 contract is about 26 points under this price) but rana as far as 5385 before reversing. I still think there is a good chance we turn lower on Monday. Targets: 5320, 5295, 5275 Abreak above 5385 is a buy signal targeting 5400 & resistance at 5420/30 for profit taking on longs & shorts need stops above 5440.
Nasdaq September futures
-
Emini Nasdaq hit resistance at 18630/730 (US100 contract is about 105 points above here) & made a high for the week exactly here.
-
Shorts need stops above 18850 & a break higher is a buy signal targeting 19000/19100 for profit taking on longs. Targets for the shorts at 18630/730 are 18480 & 18330, perhaps as far as 18200.
The contents of our reports are intended to be understood by professional users who are fully aware of the inherent risks in Forex, Futures, Options, Stocks and Bonds trading. INFORMATION PROVIDED WITHIN THIS MATERIAL SHOULD NOT BE CONSTRUED AS ADVICE AND IS PROVIDED FOR INFORMATION AND EDUCATION PURPOSES ONLY.
Recommended Content
Editors’ Picks
AUD/USD hangs near multi-week low, flirts with 100-day SMA around mid-0.6600s
AUD/USD languishes near a three-week low touched on Monday, with bears awaiting a sustained break below the 100-day SMA before placing fresh bets amid some follow-through USD strength. Friday's mixed US jobs data tempered expectations for a 50 bps Fed rate cut move later this month and continues to underpin the buck.
USD/JPY holds above the 143.00 mark; upside potential seems limited
USD/JPY trades with a mild positive bias for the second straight day, albeit it lacks bullish conviction and remains close to a one-month low touched last week. A downward revision of Japan's Q2 GDP print, along with a positive risk tone, undermines the safe-haven JPY and lends support to the currency pair.
Gold consolidates above $2,500 amid mixed cues; bullish bias remains
Gold price struggles to capitalize on the overnight bounce from a multi-day low and oscillates in a narrow trading band, above the $2,500 psychological mark during the Asian session on Tuesday. A positive risk tone and some follow-through USD strength contribute to capping the XAU/USD.
Dogecoin leads meme coin recovery following positive investor sentiment
Dogecoin is up more than 8% on Monday, as it's leading the entire meme coin sector on a rebound. The top meme coin could see a massive rally if it completes a key move within a falling wedge.
Week ahead: ECB poised to cut again, US CPI to get final say on size of Fed cut
ECB is expected to ease again, but will it be another ‘hawkish cut’? US CPI report will be the last inflation update before September FOMC. UK monthly data flurry begins with employment and GDP numbers.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.