SGT Chart Book

Market Observations|26 Jun 2023

NASDAQ

NASDAQ held the previous tops identified last week, which is probably the catalyst for further upside momentum traders to participate. RSI is in overbought territory.

The chart below is a daily chart for intra-day traders - take a look at hourly and 5 mins charts for opportunities.

DOW

Tech stocks are still leading the way. The chart below identifies orange trendline support and low risk zone to participate in any rally. Obviously, a break here could induce further downside.

US10 Year

Tested on the top side of down channel as previously identified. We continue to watch this closely intra-week for longer term direction on rates.

EURUSD

We have seen a pickup in volatility in the last couple of weeks. The trendline we are looking at on the chart below is from a weekly chart. This currently has contained the upside movement. Look at shorter term time frames for more clues and good risk-reward trading opportunities.

EURGBP

The broken trendline that now is acting as resistance was tested last week, as we mentioned, and is providing a top to any rallies. This has allowed the RSI to unwind from oversold. With further rate hikes in the UK, it pays to be short Euro and long Sterling.

GBPUSD

The previous top connected by the horizontal trendline around 1.2680 provided momentum for traders to jump on the band wagon. If in doubt “look left” for clues. Previous highs/lows give good risk/reward trading opportunities.

USDJPY

We had identified the channel shown in the chart below. For the bears it presented a good place to protect your capital with stop losses, as the pair blasted though the top side last week. Bulls may have used this as an opportunity to buy or add to longs.

XAUUSD

This is a weekly chart and as we can see, there are 3 attempts to break above 2070 area. With this trendline now broken, we could see further weakness in the yellow metal.

BTCUSD

After all the negative news and a slight breach of the 25,200-support level, the bulls took the helm, and we broke above the down trendline we pointed out last week around the 27,200 level. At the time of writing, we have seen the rally extend to approx. 31,600.

ETHUSD

ETH follows, with break above trendline resistance.

XRPUSD

Ripple has not had the same aggressive move higher as BTC and ETH, but for all the bulls out there the trendline support should hold if this is a larger shift in the crypto currency asset class.

Happy trading - until next time,
SGT Trade Desk

Disclaimer: Trading Desk Observations are not trade recommendations. The purpose of these charts is to bring to your attention potential chart patterns you may wish to monitor.