Arabica Coffee (KC) edged almost 1% higher yesterday, and is in the advanced stages of consolidating Tuesday’s break above triangle resistance (on the 4hr and daily chart). Significantly, with Robusta Coffee (RC) likely to form a fresh 2021 high by next week sometime, KC is poised to play a bit of catch up and strengthen its bounce off the 38.2% Fib retrace of the November to July rally extension…
The USDCAD is firming going into the US morning and trying to bounce off the psychologically key 1.26 whole figure level. Significantly, although the USDCAD has corrected over 300 pips since Friday’s fresh 2021 peak, the USDCAD could see fresh buying demand as early as today following the US GDP data at 830am EST, and more likely following Friday’s highly anticipated Fed comments out of Jackson Hole…
WTI Crude (CL) tacked on another near 3% yesterday, adding onto Monday’s massive bounce off downtrend support (on the daily chart). Significantly, although CL appears to have reclaimed upchannel support (on the weekly chart), CL remains vulnerable to sliding back towards last week’s low on the back of Friday’s highly anticipated Fed comments out of Jackson Hole…
The VIX (VX) has slid since Friday back to near its 2021 low, getting rejected at downchannel resistance (on the weekly chart) and the 38.2% Fib retrace of the January to August slide. Significantly, despite the strong profittaking since Friday, odds are moderately high for the VX to break above the weekly chart downchanel resistance by month end, with volatility sure to surge following Friday’s highly anticipated Jackson Hole (moved to a 1 day online event)…
Wheat (ZW) is trying to firm to start the week after last week’s rejection from a fresh 2021 high. Significantly, ZW appears more like it is in the middle innings of an orderly consolidation as opposed to the beginning of a Double Top (on the weekly chart) with the August high only slightly above the May high…
Ethereum (ETHUSD) has rallied powerfully since forming a Triple May/June/July bottom, but appears vulnerable to further healthy consolidation this week as it nears the 61.% Fib retrace of the May to July slide. Significantly, although ETHUSD is fairly likely to retest its record high before year end, the odds of profittaking back to 3k this week is moderately high…
Cocoa (CC) slid more than 1.5% yesterday, getting rejected at upchannel/ascending wedge resistance (on the 4hr chart) and upchannel resistance (on the daily chart). Significantly, CC is seeing healthy profittaking after forming a fresh 2021 high Wednesday, consolidating as well the break last week above a downchannel resistance (on the weekly chart connecting the November, March and May highs)…
The USDCHF is gaining for a 3rd straight day, fueled by yesterday’s FOMC Minutes and quickly approaching the highs of June, July and August. Significantly, the USDCHF appears poised to resume its upchannel extension (on the weekly chart), with the current weekly candle breaking above a downtrend resistance line connecting the April high to the July high…
Gold (GC) is trying to edge higher and extend its week plus bounce off just below the psychologically key 1700 whole figure level. Significantly, last week’s weekly Hammer successfully rebounded off the 2021 March low, offering a glimmer of hope to bulls who view the slide since the August 2020 peak as an extended consolidation (within a massive Bull Flag)…
The Nasdaq100 (NQ) sharply reversed an intraday dip yesterday, forming a daily Hammer just above the psychologically key 15k whole figure level. Significantly, although NQ could nudge higher this week towards upchannel resistance (on the weekly chart), NQ is incredibly overbought on a monthly chart, where yesterday’s brief break below the ascending wedge support (on the daily chart) dramatically increases the odds of a retest of yesterday’s low in the next few days, and a test of the July low in the next week…
