[Week 42 - 2022] Trades Recap and Trade Setups

Hey Traders,

The CPI was the most anticipated report last week and created a huge surprise upon the release of the report. Despite the higher than expected reading, stocks recovered all of its losses that was experienced during the release of the CPI report and closed higher for the day. However, this was short lived as during Friday, when the Michigan Consumer Confidence was release, risk on assets gave up most of its gains.

The US economic release will be light this upcoming week, however the highlight will be on inflation data from counter major economies such as the United Kingdom (GBP), Australia (AUD), New Zealand (NZD), Japan (JPY) and Canada (CAD).

Upcoming Economic Release:

S&P500

The S&P500 dipped upon the release of the CPI but recovered all the losses when the day session opened. However, the index gave up most of its gain with the 3738 region acting as an resistance on Fridays session and closed the week in the red. Fundamentals remains weak due to the CPI and with no important news for the incoming week, the risk off sentiment most likely will continue.

Dollar Index (DXY)

The Dollar continues its strength early on the week but dipped upon the release of the CPI. The Dollar trades in consolidation between 112.5 as an minor support and 113.5 as an minor resistance. Any breakout confirmation of these level will likely to provide the next direction for the Dollar Index.

 Spot Gold (XAU/USD)

As mentioned on our previous post, when both the 50 exponential moving average (EMA) and the 1695 support region do not hold, Gold will face more downside pressure. This happened last week where the price of Gold slid and closed the week at a minor support region. With the weak fundamentals and supported by the breakout of the Dollar, Gold is likely to face more downside pressure.

Trade Recap

No Updates

Trade Analysis / Setups

WTI Futures - Front Month (Analysis 42-1)

Analysis: Price has begun trading back to within the consolidation zone with 82.82 acting as a key support. We will look to long if price shows sign of reversal at the 82.82 support region.

Long opportunity: Reversal confirmation at 82.82 support region towards 85.96 as Take Profit - 1 level.

Cheers to all our member who managed to pack some profits this trading week.

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