As market sentiment deteriorates in the recent days due to the war in the Middle East, equities find it difficult to maintain it's upside momentum while war risk off assets such as Gold and Oil rallying through the roof, possibly displaying some real fear.
CPI report also came in higher than expected, and market seem to want more evidence from the upcoming retails sales release. Many of the FOMC members are also scheduled to speak this upcoming week.
Upcoming Economic Release:
Equities pushes towards the upside earlier the week, towards the 50 daily exponential moving average and reverses from it ending the week. If the 4300 region is breached, we can potentially see more downside for equities. With rising yield and fear in the market, equities may find it difficult to push towards the upside for the upcoming week.
Dollar Index (DXY)
The United States Dollar Index reverses from 105.70 support region and reverses back towards the shoulder at 106.8 region. Price remains bullish and trend continuation can potentially resume when the resistance at 106.8 is broken out of. Separately, if the support region at 105.70 is breached, trend will tilt back towards the neutral level.
As we mentioned on our previous post, Gold was extended and was due for a retracement / consolidation and price moved according to what we anticipated and even further. Price ended the week at the descending trend line and upside movement can be seen as exhaustive, although preliminary, short term short position can be taken into consideration and monitored.
Gold (Analysis 40 - 2)
Recap (Week 41 - Last Week) Take Profit - 3
Long at market position reached Take Profit - 3 level where we announced to close fully.
Trade Analysis / Setups
Soybean Oil Futures - December (Analysis 42-1)
Analysis: Price has experienced a long downtrend but has begun to tilt higher. Long opportunity can be considered when price finally breaks above the descending trend line.
Long opportunity: Break and retest confirmation at 55.05 resistance region towards 57.26 as Take Profit - 1 level.
2023 Market Order Signal Accuracy
Join our telegram channel at: https://t.me/traineetraders
Stay safe out there and safe trading!