S&P 500
throw a spanner in the works is Quasimodo resistance on the Weekly scale at 4,177, closely shadowed by the 4,325 15 August high (2022). Rupturing the aforesaid weekly trendline resistance hints at the possibility of further buying, in line with the monthly timeframe’s longer-term uptrend. Consequently, the current 4,177 resistance is an important watch right now. Adding to the bullish case on the weekly chart is the Relative Strength Index (RSI) venturing above the upper boundary of an ascending triangle between 53.72 and 30.47. While these formations are generally found in uptrends, they can also forge reversal signals.
From the daily timeframe, following price crossing above resistance at 4,087 (now a potential support), limited resistance is visible until the 4,325 15 August high mentioned on the weekly scale. On the daily timeframe, this peak is closely followed by a 100% projection at 4,378: an AB=CD pattern, as well as a 78.6% Fibonacci retracement at 4,391 and a 200% extension at 4,431.
Finally, on the H1 timeframe, Quasimodo resistance at 4,183 deserves notice, welcoming price action in recent hours. To the downside, support calls for attention at 4,100, positioned closely with a trendline support, taken from the low 3,885. A push above the current resistance, as the higher timeframes suggest, unmasks a possible breakout buying opportunity in the direction of at least H1 Quasimodo support-turned resistance at 4,219.
Monthly, Weekly and Daily Charts:
H1 Chart:
XAU/USD (Gold)
Evident from the weekly and daily timeframes, momentum to the upside has slowed, despite the trend in this Market facing northbound. Both higher timeframes have touched gloves with overbought conditions on the Relative Strength Index (RSI). The daily timeframe is also pencilling in negative divergence. While the weekly timeframe shows support being retested at $1,916, the daily timeframe indicates sellers are likely to take the wheel. The daily rising wedge pattern (between $1,929 and $1,896) experienced a breach and has since had its lower edge retested (leaving nearby resistance at $1,966 unchallenged [Quasimodo formation]). Continued bearish pressure subsequently witnessed price challenge the spirit of trendline support, etched from the low $1,616, which could pave the way back to a fresh decision point at $1,867-1,886.
Meanwhile price action on the H1 timeframe charged through the $1,920 low (Wednesday) and is set to take aim at familiar Quasimodo support coming in at $1,903 and the nearby trendline resistance-turned support, drawn from the high $1,949. Areas of interest higher up can be seen at a decision point from $1,947-1,943 (formed during Thursday’s push lower in early US trading) and neighbouring Quasimodo resistance from $1,954.
Overall, sellers appear in control, targeting the noted H1 support structure. Engulfing these levels also signals weekly support at $1,916 is in a vulnerable location and could ultimately open things up for further downside towards the daily timeframe’s decision point at $1,867-1,886.
BTC/USD
Thursday refreshing highs not seen since August 2022 energises the possibility of reaching the weekly timeframe’s falling wedge (between $25,214 and $17,567) pattern objective at $25,698, closely trailed by resistance at $28,844. This, of course, is in line with the chart’s Relative Strength Index (RSI) voyaging north of its 50.00 centreline (followed by positive divergence).
In spite of price recently battling to fresh highs, momentum has undoubtedly slowed in recent weeks, demonstrated more evidently on the daily chart. This is also displayed through the timeframe’s RSI shaking hands with indicator resistance at 89.35 and carving out negative divergence. In terms of resistance, the Quasimodo formation at $24,666 warrants attention, a touch shy of the weekly pattern profit objective mentioned above at $25,698.
Shorter-term price action shows the crypto reclaiming position above the $24,000 line on the H1 chart, casting light towards a nearby Quasimodo resistance at $24,319. This helps confirm the bullish setting seen on the weekly and daily charts, as a break of $24,319 would essentially lay the foundation for a run to daily Quasimodo resistance from $24,666 and maybe the weekly chart’s profit objective at $25,698.
Disclaimer: The information contained in this material is intended for general advice only. It does not take into account your investment objectives, financial situation or particular needs. FP Markets has made every effort to ensure the accuracy of the information as at the date of publication. FP Markets does not give any warranty or representation as to the material. Examples included in this material are for illustrative purposes only. To the extent permitted by law, FP Markets and its employees shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided in or omitted from this material. Features of the FP Markets products including applicable fees and charges are outlined in the Product Disclosure Statements available from FP Markets website, www.fpmarkets.com and should be considered before deciding to deal in those products. Derivatives can be risky; losses can exceed your initial payment. FP Markets recommends that you seek independent advice. First Prudential Markets Pty Ltd trading as FP Markets ABN 16 112 600 281, Australian Financial Services License Number 286354.
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