The Pattern Pulse – 2 May 2024
Forex: Long-Term Bullish Flag on USD/SEK
Monthly Timeframe –
Monthly Timeframe –
Since late 2022, against the Swedish krone (kr), the US dollar (USD) has been busy chalking up a potential bullish flag pattern off all-time highs at kr11.50.
As evident from the monthly timeframe, the longer-term trend favours a breakout to the upside and price action is closing in fast on the upper boundary of the bullish flag pattern. A breakout (close) above the noted structure is likely to prompt traders and investors to seek bullish scenarios, immediately targeting all-time highs and possibly beyond (bullish flag traders tend to arrange profit objectives by taking the distance of the flag pole and simply extending this value from where price breaks the upper limit of the pattern).
Commodities: WTI Oil Closing in on Trendline Support
Daily Timeframe –
Daily Timeframe –
We have a simple chart layout for the WTI oil chart this week to work with. Following four consecutive days of losses, price action is within a stone’s throw of connecting with a tight area of confluence, consisting of Quasimodo support from $77.55, trendline support (drawn from the low of $67.74) and channel support from the low of $81.09.
Should price test the aforementioned area of support, a logical upside objective to take into account would be the opposing channel resistance (extended from the high of $87.60).
Equities: Dow Pattern Structure Signals Further Selling
Daily Timeframe –
Daily Timeframe –
Following the recent completion of a head and shoulders top pattern (established off all-time highs at 18,464) on the Dow that hit its profit objective of 17,243, sellers could remain in control of this market according to yesterday’s bearish flag pattern completion, formed from 17,010 and 17,653.
According to the bearish flag pattern’s rules of engagement, chart pattern traders will be eyeing as far south as 16,021 (derived from taking the flag pattern’s pole distance and extending this from the breakout point).
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