.ES35 21 hours

Summary

Analysis
Falling Wedge identified at 09-Jun 16:00 GMT. This pattern is still in the process of forming. Possible bullish price movement towards the resistance 9471.0 within the next 21 hours.

Resistance Levels

Support Levels

The Spanish Bolse de Madrid index has been trading in a well-defined downward sloping range, confirmed by two Falling Wedge patterns. A later, shorter term Falling Wedge assumes a slightly shallower gradient, and if it completes it may mark the start of an upward change in direction. There is the significant psychological level of 9000 to contend with, so today and the first few days of next week may be telling of whether this range will remain intact for another cycle.

The US500 had moved lower through 1,040 until buying support initiated a slight upward correction. The Channel Down is likely to trigger a continuation short sell if prices trade through 1,030. Alternatively, watch for prices to rally higher towards 1,090 where selling pressure has previously pushed prices lower. This level is expected to be an exhaustion level.

For further information on this and other Autochartist products visit www.autochartist.com

West Texas Intermediate is breaking lower through 71.77 with more bearish sentiment expected until 70.31 where prices will have reached support at the near-term downside target.

For further information on this and other Autochartist products visit www.autochartist.com

A Triangle pattern emerged on the 30-minute chart as prices moved into a wide, sideways, and volatile range with a slight bias to the downside (seen by the move lower from 516.5). At just 24 candles, this pattern has a short Length reading; it also has an Autochartist Initial Trend reading of six bars, which means that, over the course of the Triangle pattern’s development, a slight trend has been present. It’s likely that the move lower from 516.5 to the low at 507.2 influenced the six-bar reading, despite the wide, range-bound market that has been in effect since the low was set.

The distribution market cycle, plus the low one-bar Breakout reading for the Triangle break, should limit expectation that prices will follow-through higher after breaking resistance at 509.5. And while the Forecast area between 512.2 and 515.7 was waiting just above a prior high (at 511), pattern follow-through fell just short of the area and has sunk back to the prior range.

For further information on this and other Autochartist products visit www.autochartist.com