Welcome to the video update for Monday, October the 4th. Trader Rick will take a look at some monthly charts to get the big picture look for the month ahead. First chart up is the EUR/USD pair monthly chart where price is now in the sell zone. Watch price action closely as we are near some resistance levels.
In gold, price is approaching the target of the measured move pattern which comes in around the $1325 to $1330 area. Price reached almost $1322 last week. Otherwise, look to buy pullbacks.
In crude, the monthly chart has been developing horizontally for a number of months, evidenced by the number of inside and outside bars. With the slow sto and the 3x indicator up, the bias is to the upside. Note where overhead resistance levels are. Support comes in at just below 70.
In the stock indexes, the monthly Dow chart shows price may be moving higher after pulling back in to the buy zone several months ago. Note resistance levels. Trader Rick looks at the Dow daily chart where we have a pattern of inside, outside, inside bars to finish last week’s trading. With this pattern, look for a break of either the low or the high of last Friday’s action. Same pattern is in the ES daily chart.
Look for price to move out of the sideways action in the indexes near term.
Good trading!