I’m seeing potential reversals on GBP/USD and Microsoft (MSFT) shares, plus a simple trend correction on the daily chart of silver.
Will we see big price swings this week?
Take a look at these long-term charts!
Microsoft Inc (MSFT): Daily
Bullish on Microsoft these days?
Don’t miss out on this potential double bottom breakout that’s about to play out on the daily time frame!
MSFT is already testing the neckline around $270, and a break higher could set off a climb that’s the same size as the chart pattern.
Technical indicators, however, are hinting that resistance might hold. For one, Stochastic is already in the overbought region to reflect exhaustion among buyers, so turning lower would confirm that sellers are back in the game.
Also, the 100 SMA is still below the 200 SMA to signal that there’s a chance the selloff could resume. Then again, price has climbed above both indicators, so these could hold as dynamic support on dips.
GBP/USD: 4-hour
GBP/USD 4-hour Forex ChartGBP/USD 4-hour Forex Chart by TradingView
Next up, we’ve got this freshly-forming double top on the 4-hour chart of Cable.
This forex pair has yet to test the neckline at the 1.1900 major psychological mark and break below it to confirm that a downtrend is due.
If that happens, GBP/USD could fall by the same height as the formation, which spans roughly 600 pips. On the flip side, if support holds, price could bounce back up to the tops near 1.2500.
Moving averages seem to be in favor of bullish moves right now, as the 100 SMA is above the 200 SMA. In addition, Stochastic is dipping into the oversold region to show that bearish pressure is fading and that buyers could take over soon.
Silver (XAG/USD): Daily
Here’s one for the commodity traders out there!
Silver recently busted through several resistance levels spanning the $21-22 region. Price has since retreated from another strong ceiling close to $25 and is pulling back to areas of interest marked by the Fib tool.
In particular, the precious metal is already about to test the 38.2% retracement level, which is near the previous resistance zone at $22.
A larger correction could reach the 50% Fib that lines up with the dynamic support at the moving averages or the 61.8% retracement level closer to $21.
Stochastic is still on the move down, which means that the correction could keep going until oversold conditions are met.
Just don’t forget that the 100 SMA has already made a bullish crossover above the 200 SMA to indicate that the odds are in favor of a bounce!
