Looking for major trends to follow this week?
Better keep these long-term areas of interest on your radar!
Here are the correction levels I’m watching on Apple Inc. (AAPL), gold, and EUR/USD.
Apple Inc. (AAPL): Daily
Apple shares recently fell through the long-term rising trend line visible on its daily time frame, indicating that a major reversal is underway.
Planning to profit from this selloff?
It might be worth waiting for a retest of the broken trend line support, which might hold as resistance moving forward. After all, this area is spanned by the Fibonacci retracement levels and the dynamic inflection points at the moving averages.
In particular, the 61.8% Fib is closest to the former support zone, which might be the line in the sand for a bearish correction.
Stochastic has plenty of room to climb, suggesting that sellers are taking a break for now and that the pullback could go on for a while.
The 100 SMA is above the 200 SMA for now, but the gap between the indicators has narrowed enough to signal a potential downward crossover.
Gold (XAU/USD): Daily
Heads up, gold bugs! This precious metal might be due to resume its uptrend soon!
Price seems to be finding buyers at the bottom of its ascending channel on the daily chart, hinting that a bounce to the nearby resistance levels might follow.
Technical indicators are in agreement that the climb could gain traction from here.
The 100 SMA is above the 200 SMA to suggest that the path of least resistance is to the upside while Stochastic is also heading north, so the commodity price could follow suit.
If that’s the case, gold could climb back to the mid-channel are of interest around $ 1,950 per ounce or all the way up to the top of the channel past the $ 2,000 major psychological handle.
EUR/USD: Daily
Hoping to catch the drop on EUR/USD? Better keep close tabs on these retracement levels!
The handy-dandy Fib tool shows that the pair is already in correction mode, currently pulling up to the 50% Fib around the 1.0770 mark. A larger correction could still reach the 61.8% level around 1.0870.
Did I mention that this is right smack in line with a falling trend line that’s been holding since June last year?
This potential ceiling is also near the 100 SMA dynamic inflection point, which is below the 200 SMA to confirm that the long-term downtrend is likely to carry on.
At the same time, Stochastic is indicating overbought conditions or exhaustion among sellers. Once the oscillator turns south, it means euro bears are ready to paint the forex town red!
