Weekly Technical Outlook: Major Resistance Levels on Gold, S&P500 & NZD/USD

 Bulls better watch out!

These higher-yielders are approaching long-term resistance levels that might keep gains in check.

Think it’s worth shorting at these key inflection points?

Gold (XAU/USD): Daily

Remember that gold descending triangle we’ve been eyeing a while back?

Well, the triangle bottom held as expected, and price is now making its way to the top!

Will this inflection point hold, too?

I’d watch the $1,850 level like a hawk since this is close to the triangle resistance. A break above this could set off a rally that’s the same height as the chart pattern, and moving averages seem to be hinting at this outcome.

Stochastic, on the other hand, is suggesting that resistance could hold since buyers are already exhausted. In that case, gold could slide back to the triangle bottom again.

S&P 500: 4-hour

Divergence alert!

I’m seeing higher highs on the S&P 500 index, but Stochastic is forming lower highs. If this bearish divergence pans out, the index could slide back to nearby support zones.

If you’ve been HODL-ing this one over the past couple of weeks (or much longer) then you might want to consider booking in some gains for now.

Then again, if you’re planning on building a long-term bullish position, you could consider adding on a pullback. The mid-channel area of interest looks like a prime spot since it lines up with the 100 SMA dynamic support around $4,500.

NZD/USD: Daily

Don’t look now, but NZD/USD is closing in on the very top of its ascending channel on the daily chart!

Technical indicators are giving flashing red signals, as the moving averages made a bearish crossover while Stochastic reached the overbought zone.

In that case, the channel top around the .7150 minor psychological resistance would likely force the pair to turn back down.

Just be careful since the pair also broke above the 200 SMA dynamic inflection point, so bulls might put up a strong fight. Better set wide stops if you’re shorting this one!

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