Equities had a short run towards the upside as market participants got in before the earnings release. However, the upside run was limited and most of the move were retraced the following day. Meanwhile, Powell shared insights during his Jackson Hole speech and reemphasize that subsequent rate hikes will be heavily dependent on economic data.
The US jobs and unemployment report will be the main highlight of next week.
Upcoming Economic Release:
The S&P500 index retests the 50 daily exponential moving average (EMA) and the shoulder resistance level at 4485 region. However, price did not manage to continue trading above and closed the week near the neckline support region at 4370 region. If the neckline support does not hold, we can potentially see more gloomy days for equities as price can potentially trde towards the 4150 region.
Dollar Index (DXY)
The United States Dollar Index continued to gather strength last week and is now deemed as overextended. We took a short 2 weeks ago and we will be increasing our short position upon market reopening.
Gold extend its downside move but found support at the 50 period weekly exponential moving average (EMA) where it then formed a tweezer bottom and closed at resistance level. If price continues to push towards the upside, it is possible for price to trade towards the 1918 region. However if the 50 EMA does not hold, we can see price dip towards the 1867 region.
WTI - Front Month (Analysis 33-2)
Recap (Week 34 - Last Week) Take Profit - 2
Short at market reopening position reached Take Profit - 2 level where we announced to close / partial.
Trade Analysis / Setups
Dollar Index - Front Month (Analysis 35-3)
Analysis: Dollar is now overextended and we will be adding position to our current short position.
Short opportunity: At market reopening as High Risk trade towards 101.46 as Take Profit - 1 level.
Natural Gas - Front Month (Analysis 35-2)
Analysis: Downside momentum is slowing down and showing sign of reversal. For now, price is trying to get back to the range of between 2.655 and 2.75. Trading above the 2.655 region will be promising for long position.
Long opportunity: Breakout and retest confirmation at 2.655 region towards 2.75 as Take Profit - 1 level.
2023 Market Signal Order Accuracy
Stay safe out there and safe trading!