Ready for another week of technical trades?
This week we’re looking at Pepsi and gold’s trend pullbacks as well as EUR/AUD’s possible Double Bottom breakout.
Don’t even think of missing their daily chart setups!
Pepsico, Inc. (PEP): Daily
Pepsico, Inc. (PEP) Daily Chart
Those who are trading Pepsico, Inc. (PEP)’s earnings release should know that the stock is not too far from a major support zone.That’s right! PEP is trading near $161.50, which is a few red candlesticks away from the $156 – $157 zone that has been serving as resistance AND support for the stock since the second half of 2021.
This time around, a dip to $157 would coincide with a retest of a months-long ascending channel on the daily time frame.
Pretty convenient for bulls who are already noting the bullish divergence on the chart.
Look out for buying interest around the channel support and previous inflection point, which could present a good entry in case PEP extends its months-long uptrend.
XAU/USD: Daily
XAU/USD Daily Chart
Spot gold (XAU/USD) just turned lower after encountering sellers around September’s $1,730 inflection point!
Coincidence? Only if you’re a gold bug!
See, $1,730 is also just below the daily chart’s 100 SMA. More importantly, it’s right around a Fibonacci retracement of August and September’s downswing and is near the descending channel resistance on the daily time frame.
Are we looking at trend continuation over here? The bearish momentum after the rejection at $1,730 hints that there’s still room for more selling.
Shorting at current levels could still get you profits especially if you place your stops just above October’s highs and aim for September’s lows.
Not feelin’ like shorting the commodity? You can also bet on a bullish breakout once you see XAU/USD consistently trade above the channel and 100 SMA that we’re watching.
EUR/AUD: Daily
EUR/AUD Daily Forex Chart
I spy with my eye a possible Double Bottom pattern breakout!
EUR/AUD is testing the 1.5400 handle that bulls and bears have been minding since 2021.A clear break above the level opens the pair to a move to the 1.6500 zone. That’s about 1,100 pips higher, which would equal the height of the “Double Bottom” on the daily time frame.
Of course, sellers could also step in at areas of interest like 1.5700 or 1.6200 if there’s not enough demand to push EUR higher against AUD.
Don’t discount downside action though!
If the consolidation that we’re seeing translates to a bearish swing for EUR/AUD, then y’all gotta be ready to trade potential retests of the 1.4300 support.
What do you think? Which way will EUR/AUD go?
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