India’s Nifty 50 is trading in the red, but is defending the 50-hour EMA 10,445.
The bullish hammer reversal confirmed on Friday indicates scope for a corrective rally toward 10,700-10,800 in the next few days.
Therefore, I would be a buyer on the dips. The bullish outlook would be invalidated if the index closes today below the downward sloping 5-day EMA.
Brent oil is looking south, having witnessed a bear flag breakdown on the hour chart.
As of writing, the front-month contract is changing hands at $84.26 per barrel. The RSI o the hourly and dailies is biased toward the bears. Notably, the daily RSI has rolled over from the overbought territory and has breached the rising trendline.
I would want to sell oil for re-test of $82.64 with stops above $85.14.
The broader outlook would still remain bullish as the 50-day, 100-day and 200-day are sloping upwards and are located one above the other.
Eur’s pullback frm intraday high of 1.1644 to 1.1584 is discouraging, but only a close blw 1.1526 boost bear sentiment & allow deepr drop to 1.13.
Close abv 1.1659 is needed to embolden the bulls.
Buy BTC @6500 Tar 6650 stops below 6480
Strategy: Tight stops, Willing to re-enter trade at mentioned levels as long as BTC doesnt print lows below $6.4K
Oil creating bear flag on the hourly chart. below $66.50, the breakdown would be confirmed and could take oil down to $65.00.
Stops to be placed abv the flag high of $67.16
USD/JPY has created a bull hammer today on the 50-day MA support. The pair has been creating higher lows along the rising 50-day MA since April. That makes it a key support to watch out for,
Copper has gained 6.3 percent this week and looks set to close above $3.30 (July 2014 high). It would only bolster the bullish technical setup, as indicated by the inverse head-and-shoulders breakout, solid rebound from the falling trend line in March and a rise above the ascending trendline.
Above $3.30, next big resistance is seen at $3.4617 (Dec. 23, 2013 high).
An uptick in copper prices is usually considered a positive sign for the global economy and also for the Australian dollar.
Note the Rejection at 161.8% Fib ext. level of 1.3274. Now we wait for a breakout bullish/bearish of the rising wedge pattern. Looks as if bearish break is on the cards. That would mark end of the rally from 1.20 handle.
Bearish price RSI divergence on the daily chart
Sell around 0.7990
Stops above 0.8043
Monthly chart – Watch for a break below or rebound from 1.6190… upside to be capped around 1.75, below 1.6190 would expose 1.5789 Oct 2016 low