InstaForex

October 4, 2021

Weekly Technical Outlook: Crude Oil Ceiling, ATOM & GBP/JPY Breakout

 Who’s up for some triangle breakout setups?


Better keep tabs on these GBP/JPY and ATOM/USD triangles, and watch out for WTI crude oil hitting record highs.


ATOM/USD: 4-hour

Cosmos (ATOM) a.k.a. “internet of blockchains” might be due for a big move, as price is consolidating tighter inside a symmetrical triangle on its 4-hour chart.


This means that it’s a pretty close fight between buyers and sellers, with one camp about to dominate soon!


Which way will it go?


Technical indicators are looking mixed, with the 100 SMA above the 200 SMA to suggest that the bottom of the triangle is more likely to hold than to break. This faster-moving MA is also holding as dynamic support around $37.50.

However, Stochastic has room to head south, so ATOM/USD could follow suit while sellers have the upper hand.


A break below support could set off a slide that’s the same height as the triangle while a move past the triangle top around $40 could trigger a rally of that height. Don’t miss out yo!


WTI Crude Oil: Daily

With the OPEC rumored to be considering another production boost, crude oil might get rejected at its recent highs.


There are a few other upside barriers that might keep the rally in check, including the 76.4% Fibonacci extension level and the $80 per barrel major psychological resistance.


Stochastic is also indicating exhaustion among bulls, so they might be keen on booking their profits soon. The 100 SMA is above the 200 SMA, but the gap between the indicators is narrowing to reflect weakening bullish pressure.


A pickup in upside momentum, on the other hand, could send crude oil climbing to the full extension at $81.41 per barrel.

GBP/JPY: Daily

It’s the descending triangle that keeps on giving!



Guppy is still hanging out inside this consolidation pattern, and support appears to be holding once more.

In that case, the pair could bounce right back up to the triangle top around 151.00-151.50. After all, the 100 SMA is above the 200 SMA, and the latter is holding as dynamic support around the 150.00 mark.


Stochastic looks undecided, though, as the oscillator is hovering around middle ground.


If you’re hoping for bigger moves, better keep your eyes peeled for a breakout in either direction since this could lead to a trend that’s about the same size as the triangle or 600 pips!