If you’re looking for big moves to start the week, then you’re in luck!
Take a look at these chart patterns and key inflection points on the long-term charts of CAD/CHF, WTI crude oil, and Microsoft (MSFT) shares.
Will we see breakouts soon?
Microsoft (MSFT): Daily
Let’s kick things off with this neat reversal setup on the daily time frame of Microsoft shares. Better warn my buddy Bill about this potential selloff!
The stock price has completed its head and shoulders formation and is currently testing the neckline around $280. A break below this support level could confirm that a downtrend of the same height as the chart pattern is underway.
However, technical indicators suggest that there’s hope for bulls. Stochastic is already reflecting oversold conditions, so turning higher might draw buyers out. Also, the 100 SMA is above the 200 SMA to hint that support is more likely to hold than to break.
Just watch out for that narrowing gap between the moving averages since it might mean that a bearish crossover is looming!
CAD/CHF: Daily
This pair is sitting right at the top of its long-term range around the .7500 handle. Blink and you might miss it!
If sellers defend the ceiling again, CAD/CHF could tumble back down to the bottom of the range around the .7175 mark or at least until the area of interest at the middle.
A break higher, on the other hand, could set off a climb that’s the same height as the range formation, which spans roughly 325 pips.
So which way will it go?
Technical indicators are giving mixed signals, with the 100 SMA below the 200 SMA and Stochastic pulling higher.
Better keep your eyes peeled for reversal candlesticks at the resistance if you’re planning on shorting.
WTI Crude Oil: Daily
Here’s one for commodity traders out there!
Crude oil has formed lower highs and found support near the $100 per barrel mark recently, creating a small descending triangle pattern on its daily time frame.
Looking further back shows that the commodity is still safely above its long-term ascending trend line connecting the lows since late last year.
At the same time, the 100 SMA is above the 200 SMA and is increasing its lead to confirm that the climb is more likely to resume than to reverse.
To top it off, Stochastic is starting to turn higher from the oversold region to signal that buyers are taking over while sellers take a break.
Stay on the lookout for a bullish move past the triangle top to gauge if bulls are about to charge again soon!
