It’s shaping up to be an exciting week with these key levels being tested on gold, NZD/USD, and Tesla shares.
Don’t miss out on these potential long-term plays!
NZD/USD might be done with its long-term rally, as the pair formed a sketchy double top on its daily time frame. Price is still sitting on the neckline, though, still deciding whether to make a bounce or a break.
A break lower could set off a slide that’s at least the same height as the chart pattern, which is roughly 400 pips.
However, technical indicators are suggesting that Kiwi bulls might not give up so easily. The 100 SMA is above the 200 SMA to reflect bullish momentum while Stochastic is just starting to climb out of the oversold region.
This precious metal recently busted through its long-term falling trend line resistance and is in the middle of a retest of the area of interest.
If it holds as support, price could recover to the upside targets marked by the Fibonacci extension tool. But are gold bugs likely to return?
Technical indicators are looking mixed, as Stochastic is already indicating exhaustion among sellers but the moving averages are giving off bearish vibes.
A continuation of the climb could take gold up to the 61.8% extension, which lines up with the latest swing high or even all the way up to the full extension near the $2,000 major psychological mark.
What’s my buddy Elon Musk up to these days?
Tesla shares have been on a tear in the past week, but the stock price is hitting a long-term roadblock at the top of its descending triangle on the daily time frame.
Holding as resistance could send TSLA back to the bottom at $565, especially since Stochastic is signaling that bulls are feeling exhausted.
The 100 SMA is above the 200 SMA for now, but the former is also acting as dynamic resistance at the top of the triangle. In addition, the gap between the moving averages is narrowing to signal weakening bullish pressure.
If you’re counting on an upside breakout, better keep your eyes peeled for a move above the $700 triangle top!