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Three great trading setups. DAX, Gold and USDJPY

Tomasz Wiśniewski

Another gap in the DAX, this time a bearish one. We start Thursday on the important mid-term horizontal support, which may help to lift the price higher. Why? Because that would be the gap closing movement and we all know that gaps love to be closed, especially on the DAX. The sentiment in the long-term remains negative but in the short-term, we can see this light in the tunnel.

Next one is Gold, where the buyers again tried to break the 38,2% and again they were unsuccessful. That is potentially very dangerous. Double top formation on a 38,2% is never good. Breakout of the neckline of this pattern will give us a strong sell signal.

The last one is the USDJPY, where the price bounced from the lower line of the symmetric triangle pattern. That is a positive sign, especially that it was done with a double bottom formation, which has good looking long tails. If you are not convinced yet, wait for the breakout of the blue horizontal resistance first.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis

This article was originally posted on FX Empire