Welcome to a brand-new month of trading, fellas!
Start off by checking out these long-term support and resistance levels on these charts of IBM, XAG/USD, and AUD/USD:
IBM: Daily
Lower highs and higher lows… Why that’s a triangle pattern right there!
IBM just bounced off the top of the formation and might be in for another test of support around $125. Will buyers be able to defend the floor again?
Technical indicators are giving mixed signals. The 100 SMA is below the 200 SMA to suggest that support is more likely to break than to hold, possibly sending IBM shares lower by the same height as the pattern.
However, Stochastic is on its way up to reflect bullish pressure. This means that price could follow suit until overbought conditions are met.
Heck, IBM might even attempt to break past the triangle top and go for a rally that’s the same size as the triangle!
AUD/USD: Daily
Careful, Aussie bears! AUD/USD is closing in on a very strong support level visible on the daily time frame.
Price is approaching the .7000 major psychological barrier, which has held as support since December last year.
At the same time, Stochastic is indicating exhaustion among sellers, which means that buyers could step up their game soon.
The 100 SMA is below the 200 SMA for now, but the gap between the indicators is narrowing to reflect slowing selling pressure and a potential upward moving average crossover.
If that happens, Aussie bulls might charge again and spur a bounce back to the nearby resistance levels.
Silver (XAG/USD): Daily
Don’t look now, but silver is already sitting right at the bottom of its long-term channel!
If support holds, the precious metal could make its way back up to the top at $26.50 or the middle around $25.00. Technical indicators seem to be hinting at the uptrend resuming, too.
The moving averages just made a fresh bullish crossover, confirming that buying momentum is about to pickup.
Also, Stochastic is already in the oversold territory to signal that sellers are exhausted. Turning higher would mean that buyers are back in action, so better watch out for that!
