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Technical Analysis

Analysis of GBP/CAD: Price Falls Below 1.800 LevelAnalysis of GBP/CAD: Price Falls Below 1.800 Level In the first nine months of 2024, the GBP/CAD exchange rate rose by over 7%, surpassing the significant 1.800 level. The last time GBP/CAD remained consistently above this level was back in 2016, but it later dropped below. Since then, bulls have made two attempts to push the price above 1.800: in 2018 and again in 2020 (during the coronavirus panic) – both of which failed. A third attempt occurred when GBP/CAD climbed above 1.800 in September 2024, but yesterday’s large bearish candles (marked with an arrow) suggest that this attempt to stay above 1.800 may also fail. Yesterday’s decline in GBP/CAD was driven by a combination of factors, including: → A rise in oil prices, which strengthens the Canadian dollar as Canada is a major exporter of oil; → A slowdown in manufacturing activity in the UK during September, as reported by Reuters. Technical analysis of the GBP/CAD chart shows the price is moving within an ascending channel (marked in blue), which has remained relevant since the start of 2024. Support levels for the price could be → The 1.78500 level (which acted as resistance from mid-July before being broken in September); → The median line of the ascending channel; → The orange trendline. However, it is possible that these support levels may not be strong enough to ensure that GBP/CAD can consistently hold above the 1.800 level, which has historically acted as key resistance. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
by FXOpen
XAU/USD: Ready for a Strong Breakout?The XAU/USD chart is painting a promising picture as gold prices hover around $2,660.630. With solid support from the EMA 34 ($2,648.177) and EMA 89 ($2,613.679), buyers currently hold the advantage in maintaining the upward momentum. All eyes are now on the key resistance level at $2,687.072. If buyers manage to push the price above this mark, gold is likely to continue its rally, reaching new highs and offering significant opportunities for traders. However, the market remains highly sensitive to economic news from the U.S., especially the upcoming moves by the Fed. These factors could have a strong impact and dictate the future direction of gold prices. Will gold overcome the resistance and break higher, or will it turn back and correct? The next moves are eagerly anticipated!
OANDA:XAUUSDLong
by Zola_Hello
Technical Analysis is NOT What the Majority Thinks It Is One of my favourite activities during my free time is sitting on the sofa and finding analyses on TradingView that resemble the one portrayed on the left-hand side of the illustration. My goal is to try deciphering what a given author is trying to convey to us, the audience. As you know, the more noise there is on the charts, the blurrier the picture becomes. The blurrier the picture, the more there is room for curiosity and discovery. Over the years, I’ve become more convinced that less is more and that you don’t need to clutter your charts with an abundance of instruments while conducting a technical orchestration. In fact, most people have false expectations regarding how proper technical analysis should be conducted. Many think TA is all about lines and boxes when, in reality, it’s about understanding price behaviour and making educated guesses with pre-calculated risk. Therefore, the aim of this brief educational article is to contrast two types of traders – let’s call them Average Joe and Experienced Joe – and provide professional insights into how technical analysis really functions and should be practiced. Let’s start by scrutinising the scenario on the left. The author has identified some critical regions, drawn a few lines, and highlighted a Fibonacci retracement level of importance. Then, they sketched a game plan using arrows to indicate how the price might behave next. What’s wrong with this approach? In short, everything. The longer answer: there’s a lack of necessary technical interpretation combined with unnecessary efforts. Although some analytical tools are present, they don’t offer any depth in terms of what the price behaviour might be orchestrating. Nor do most of these instruments serve any purpose when applied in a scattered manner. Now, let’s analyse what Experienced Joe – the trader behind the right-hand side of the screen – has put together. He has identified key regions and utilised a few tools for mapping purposes. However, his primary focus is understanding price behaviour by interpreting movements on the weekly-timeframe chart. Since he has traded the same handful of financial securities for years, he is experienced in reading charts like a book and grasping the logic behind price action. After understanding what’s unfolding, the trader finalises his game plan and executes positions. Comparing the two traders, we can see a significant difference between using technical instruments in abundance without comprehension, and using them in moderation with the real goal of understanding price behaviour.
With that said, here is a 3-step guide on how to properly utilise technical analysis when studying a financial instrument and entering trade positions: Step #1 - Read the chart like a book. Where is the price potentially headed? What has been happening recently? What economic event caused the massive candle spike? Does it look like the price is correcting a recent impulse? Take a glance at the graph and try to understand the overall situation. Step #2 - Highlight key zones and sketch a game plan. This is a crucial level that the price has respected for a significant amount of time.
Here, the price printed a liquidity grab, so I’ll mark that.
The price is forming a reversal bottom, so I’m preparing to go long from here.
The 0.84 region looks like a solid initial target. Sketch a preliminary game plan based on your analysis and focus on execution. Step #3 - Execute a trade position at pre-calculated risk (usually, 1-2%). Set your entry. Place your Stop Loss. Execute the trade. In conclusion, technical analysis is not just about drawing some lines and shapes. It’s time to change the stereotype and emphasise the real utility of technical analysis. After all, trading without trying to understand price dynamics—especially if you are a technical trader—is like blindly memorising driving rules without understanding their purpose. Of course, there’s no secret recipe that works 100% of the time, including technical analysis. However, by sticking to a consistent approach and being patient, we can aim toward achieving long-term profitability.
CRYPTO:BTCUSDEducation
by Investroy
DreamAnalysis | SOL Analysis: Key Triggers for Futures TradingWelcome to today’s analysis. I will be analyzing Solana (SOL) for futures trading. The analysis will cover daily and 4-hour timeframes, focusing on identifying suitable entry and exit triggers. Daily Timeframe Overview In the daily timeframe, after a sharp upward move with strong momentum, SOL hit the $202 resistance zone, initiating a correction phase that has lasted for about 200 days. During this period, the coin has been consolidating between the $125 and $202 levels. Volume Decline and Key Resistance The trading volume has been gradually decreasing, and currently, the price is below the $161 resistance. After testing this resistance three times, SOL has yet to establish itself above this level. A breakout above $161 could serve as a good long trigger, with the first target being the next resistance at $187. voiding Moving Averages I’m not using moving averages like the SMAs due to the market’s range-bound condition and low volatility. However, for detecting momentum, we can use an RSI breakout above 65.01, but this confirmation isn’t highly reliable due to the sideways market, which makes indicators and oscillators less accurate. Long Triggers and Potential Targets The next long triggers are the breakouts of the $187 and $202 resistance levels. Personally, I prefer opening a position with the $187 breakout, as the $202 breakout might not provide a strong and reliable trigger. If $202 is broken, the next target would be $233. Short Triggers and Bias Towards Uptrend The short triggers are $139 and $125, but I’d prefer to open a position at $125 since the main market trend is still bullish and currently in correction. I believe there is a higher chance of an upward move than a downward one. If the support levels are broken, the next support target would be $82. 4-Hour Timeframe Analysis Now, let’s move on to the 4-hour timeframe. The triggers from the higher timeframes are also visible with slight modifications, and we can use the same triggers in this timeframe as well. Weakening Momentum In the last upward wave, after hitting the $160 resistance, volume started to decline, and the size of the candles and market momentum indicated weakness in the trend. Additionally, we have a convex trendline that also highlights the weakening wave. Given this, I’d personally open a short position upon breaking the trendline and the $152 support, but with low risk. I’d take profits at the $138 and $126 support levels. Importance of $160 Resistance Despite the weakening trend and the short trigger, I wouldn’t hesitate to open a long position. The $160 resistance is crucial, as it has pushed the price down three times so far. Therefore, it’s natural for the price to lose strength near this level. The $160 breakout is also a valid long trigger, and I’d make every effort to open a long position if this resistance is broken. Caution on Short Triggers As mentioned, the first and riskier short trigger is the $152 level, which isn’t very reliable. I recommend risking only half of your usual amount for this position. The next trigger is at $138, which I view as a target for the first short position. The main short trigger is at $126. [bFinal Thoughts on SOL’s Trend Overall, I believe that in the higher timeframes, Solana’s trend remains bullish, which affects futures triggers. Given this, I personally prefer taking long positions, which is why I wouldn’t open a short position at the $138 level. However, the $160 breakout seems like a good long position opportunity for me. Disclaimer This is not financial advice, and it’s purely my personal opinion on the movement of this coin. It may be entirely wrong, so always do your own research before making any decisions.
Long
by DreamAnalysis
Toncoin Resumes Its Bullish TrendToncoin with ticker TONUSD made a bigger decline recently after Telegram CEO Pavel Durov was Arrested in France. However, they were most likely just spreading the fear like back in 2022 when FTX's Sam Bankman-Fried was arrested as well, but Crypto market found the low back then and turned bullish. So, don't get scared at this stage, as TONUSD may have just finished a deeper A-B-C correction in wave (4) from where we can expect a bullish resumption for wave (5) of 3. It's actually nicely bouncing from projected support area for wave (4), so wave (5) can be now in progress, especially if jumps back above channel resistance line and 7.3 bullish confirmation level. If that will be the case, then wave (5) has space towards 12-14 target area. In Elliott wave theory, every impulse should be finished by a five-wave cycle.
CRYPTO:TONUSDLong
by ew-forecast
Deepak Nitrite Stock Chart Ascending Channel: The stock has been trading within an upward-sloping channel since late 2023, making higher highs and higher lows, which indicates a strong long-term uptrend. The price recently tested the lower boundary of the channel and has shown signs of a rebound. Triangle Breakout: A bullish breakout has occurred from a symmetrical triangle pattern, suggesting renewed upward momentum. The stock has surged by over 20.26% from the breakout point, confirming the pattern. The breakout targets are around ₹3,562 based on the height of the triangle projected from the breakout. MACD: The MACD indicator shows a bullish crossover, with the MACD line crossing above the signal line, which is a strong confirmation of positive momentum. Key Support Levels: ₹2,800: This level aligns with the lower boundary of the channel and has acted as strong support. ₹2,600: A previous low that provides additional support in case of any pullback. Resistance Levels: ₹3,095: A key resistance level to watch, previously tested and failed. ₹3,562: The price target projected from the breakout. Volume: Volume has been rising since the breakout, further validating the upward move and adding confidence to the bullish outlook. Conclusion: With the recent breakout and strong upward momentum, Deepak Nitrite shows a bullish trend. Investors should watch for a retest of support levels near ₹2,800, while upside targets point to ₹3,562. The long-term trend remains positive as long as the stock holds within the ascending channel.
NSE:DEEPAKNTRLong
by AngshumanSaikia
XAU/USD: Break $2,679 or Retrace?The XAU/USD chart shows gold hovering around $2,649, with key support at $2,623 and $2,649. The EMA 34 ($2,643.988) and EMA 89 ($2,607.307) provide strong support, maintaining the bullish momentum. The main focus is on the resistance at $2,679. If the price breaks above this level, the upward trend is likely to continue. However, if unsuccessful, gold may correct toward lower support levels. The market is also awaiting key news from the U.S., which could significantly influence gold’s direction in the near future.
OANDA:XAUUSDLong
by Zola_Hello
XAUUSD: 500 pip trading strategy!Dear friends, XAUUSD continues to gain some recovery momentum as it has reclaimed 2625, but the main trend and the long-term trend are still moving in a bearish direction from the head and shoulders perspective. In the short term, the price is approaching 2650 and XAUUSD is approaching the neckline limit. And the bearish pattern is expected to continue to strengthen in the near term, as shown by the unchanged 34.89 EMA, the target is the support levels of 2605 - 2600. And you, how do you think XAUUSD will move in today's trading day!
OANDA:XAUUSDShort
by Bentradegold