Who’s up for a fresh set of long-term setups?
I’ve spotted some reversal patterns ready to play out on these daily charts!
Take a look at these make-or-break levels on Alphabet Inc (GOOG), WTI crude oil and AUD/CAD:
Alphabet Inc (GOOG): Daily
I’m seeing – not one, not two – but THREE bottoms on Alphabet Inc shares!
Even better, this stock is already making an attempt to bust through the neckline of its triple bottom pattern.
If GOOG is able to close above the $2,400 mark with this daily candle, it could confirm that a reversal from the downtrend is in the cards. This might kick off a rally that’s the same height as the chart pattern, possibly taking GOOG up to the next area of interest around $2,600.
Technical indicators are saying “Not so fast!” though, as the 100 SMA is still below the 200 SMA to reflect bearish pressure. In addition, Stochastic is closing in on the overbought region to reflect exhaustion among buyers.
If the neckline continues to keep gains in check, Alphabet Inc shares could stay in range and dip back to the lows near $2,200.
Here’s one for the oil bears out there!
WTI crude oil looks exhausted from its long-term climb, as the commodity price has formed a complex double top on its daily time frame.
Price is hanging around the neckline support near the $100 per barrel major psychological mark, still deciding whether to make a bounce or a break.
Selling pressure might be building up, as crude oil made lower highs recently. If the neckline gives way, the commodity might be in for a decline that’s the same height as the formation.
On the other hand, if oil bulls refuse to let up, another bounce back to the highs might take place. After all, the 100 SMA is still above the 200 SMA, and Stochastic is pulling higher from the oversold region.
A bit of a bullish divergence can be seen also, as the oscillator made higher lows while price had lower lows.
Last but certainly not least is this classic break-and-retest opportunity on the daily chart of AUD/CAD.
The pair tumbled below the floor at the .8900-.9000 zone and found support at the .8742. AUD/CAD is in correction mode and is touching closer to the area of interest.
The 38.2% Fibonacci retracement level near the .8900 handle is holding as a ceiling with a doji reversal candlestick to boot. A higher pullback might still reach the 50% Fib at .8939 or the 61.8% level at .8985.
If any of these Fibs hold, AUD/CAD could slump back to the lows from here.
Stochastic is on its way up and has plenty of room to climb before reflecting exhaustion among buyers, so the correction could keep going for a while. The moving averages aren’t giving strong directional clues at the moment, but it looks like a bearish crossover is brewing.