Last few trading days to close November out!
Who’s down for a bunch of pullback setups on the daily charts?
Check out these potential trend continuation plays on the S&P 500 index, silver, and EUR/AUD.
S&P 500 Index (SPX500): Daily
First up is this update on the S&P 500 downtrend we’ve been watching last week!
The equity index is already testing the long-term descending trend line that’s been holding since the start of the year. Will it bounce or break from here?
Technical indicators are still pointing to a continuation of the long-term slide, as Stochastic is hovering around the overbought region to reflect exhaustion among bulls.
Heading lower would confirm that bears are back in the game and might take the index down to the nearby support zones.
At the same time, the 100 SMA is safely below the 200 SMA, which means that resistance is more likely to hold than to break. The 200 SMA is even right smack in line with the trend line to add to its strength as a ceiling.
Silver (XAG/USD): Daily
In the mood to trade commodities this week?
Silver is presenting a channel correction opportunity, as it retreats from the top and might be due to dip to the support levels marked by the handy-dandy Fib tool.
The 38.2% level already seems to be holding as a floor near the mid-channel area of interest, but until new highs are formed, the retracement is still on!
Besides, Stochastic has plenty of room to head south before reaching the oversold region to signal that sellers need a break. A larger pullback could reach the 50% level near the 200 SMA dynamic support or the 61.8% Fib closer to the channel bottom.
Just don’t forget that the 100 SMA is above the 200 SMA to confirm the presence of bullish vibes. Also, the gap between the indicators is widening to show strengthening upside momentum.
EUR/AUD: Daily
Here’s one for my forex buddies out there!
EUR/AUD recently busted through the neckline of its double bottom on the daily time frame, indicating that a long-term reversal is due.
Before that happens, the pair might still need a quick retest of the former resistance level to gather more bullish momentum.
Using the Fib tool shows that the broken neckline coincides with the 38.2% Fib, which might be enough to keep losses in check. A larger retracement could reach the 50% level that’s closer to the dynamic support at the moving averages.
Oh, and did I mention I’m seeing a fresh bullish crossover about to happen, too?
Stochastic isn’t giving very clear directional clues at the moment, though, as the oscillator is on middle ground to reflect some consolidation going on.
If any of the Fibs hold as support, watch out for a move back to the swing high at the 1.5700 handle or a rally that’s the same height as the reversal pattern. That’d be close to 900 pips yo!
