Last Few Great Setups Before Easter!

With so many events ahead, today should be an interesting day. The OPEC meeting leads the day, in addition to Job data from the US and Canada and the upcoming Easter weekend which means many markets will be closing on Friday and Monday. Mid-term traders will likely keep their positions opened throughout the long weekend, which increases their risk in an already risky industry. Sit tight and get ready for today’s analysis.

Let’s start with the commodity which is most at risk of being affected from the OPEC meeting; oil. The price is fairly stable and the recent upswing created the right shoulder of the inverse head and shoulders pattern. This can be a good move for buyers. How can the OPEC meeting affect oil prices? If we hear promising news then the price of oil will have better chances of breaking the 28 USD/oz resistance level which would indicate a buy signal.

Moving on to the DAX, where the relief rally has continued. In yesterday’s session the index averted a head and shoulders pattern, but in today’s the price bounced from Tuesday’s highs. The current formation could be one of two; an ascending triangle promoting the breakout to the upside or a double top formation promoting a reversal. What’s next? A breakout of the horizontal resistance would give us a buy signal while a breakout of the dynamic support would give a sell signal.

Now let’s get back to the EURGBP which we recently mentioned. The last time we spoke about the pair it was going through four trend continuation patterns in a row. The last one, which was a wedge, was eventually prolonged and ended in a pennant – which is a sell signal. After the pennant, we now have another flag, which also promotes a breakout to the downside. This chart is a perfect example of how effective the trend continuation pattern can be.

In today’s session, we’re discussing a fourth instrument and that’s because there’s a small but important update on gold. In yesterday’s analysis we mentioned that gold was on a combination of crucial horizontal and dynamic support levels. In most cases when those two meet we see a bounce. This was no exception, the price of gold used those two supports and is now moving upwards.