I’m seeing a bunch of classic chart patterns on the long-term charts of gold, bitcoin, and AUD/CHF.
Will we see big directional moves soon?
Here are the breakout levels I’m watching:
Check out this huge descending triangle on the daily chart of AUD/CHF!
The pair has formed lower highs and is back to testing the strong support area around the .6500 handle, still deciding whether to make a bounce or a break.Technical indicators are giving mixed signals, with the moving averages bracing for a bearish crossover and Stochastic already indicating oversold conditions.
A return in bullish vibes could lead to another bounce back to nearby resistance levels, probably until the area of interest around .6700 or all the way up to the triangle top at .6900.
Gold (XAU/USD): Weekly
Be careful, gold bugs! We’ve got a huge reversal pattern brewing on the precious metal’s weekly chart.
The commodity price is already testing the neckline of the double top pattern, so a break below the $1,700 area could set off a drop that’s the same height as the formation.
There’s still a chance support could hold, though, at least based on technical signals.
The 100 SMA is above the 200 SMA to indicate that bullish momentum is in play while Stochastic is hovering around oversold levels.
Turning higher would mean that buyers are regaining the upper hand while sellers take a break, possibly sending gold back up to the resistance at $2,000 again.
Bitcoin (BTC/USD): Daily
Here’s another potential breakout looming on the long-term chart of bitcoin.
BTC/USD has formed lower highs and found support around the $19,000 area, creating a descending triangle on its daily time frame. Price is testing the triangle bottom once more, and it looks like a break lower is possible.For one, Stochastic has some room to head lower before reaching the oversold area to signal that sellers are done. This means that bearish pressure could still be strong enough to take bitcoin for another leg lower.
At the same time, the 100 SMA is safely below the 200 SMA to confirm that support is more likely to break than to hold.
The gap between the indicators is even widening to show strengthening selling pressure!
Even if BTC/USD bounces off current levels, its rally might be limited to the triangle top that’s right smack in line with the 100 SMA dynamic resistance.