Weekly Technical Analysis with Candlestick Charts – 17 October 2021

Weekly Technical Analysis with Candlestick Charts – 17 October 2021

WEEKLY SNAPSHOT

    GDP (YoY), U.K.

    WHEN:                                               WHAT IT HAD INFLUENCED:

13th OCTOBER 2021                                GBP and its subsequent pairs

WHAT HAPPENED: Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health.

GBPAUD is currently in the downward channel. Further downside can be seen in the coming week.

     Core CPI (MoM) (Sep), U.S.

     WHEN:                                              WHAT IT HAD INFLUENCED:

     13th OCTOBER 2021                                USD and its subsequent pairs

WHAT HAPPENED: The Core Consumer Price Index (CPI) measures the changes in the price of goods and services, excluding food and energy. The CPI measures price change from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

AUDUSD is currently in the upward channel. Further upside can be seen in the coming week.

ZEW Economic Sentiment (Oct), GERMANY

WHEN:                                              WHAT IT HAD INFLUENCED:

12th OCTOBER 2021                                EUR and its subsequent pairs 

WHAT HAPPENED: The German (ZEW) Economic Sentiment Index gauges the six-month economic outlook. A level above zero indicates optimism; below indicates pessimism. The reading is compiled from a survey of about 350 German institutional investors and analysts.

EURTRY is currently in the upward channel. Further upside can be seen in the coming week.

Gold Back in Mid-$1,700 Trenches, Albeit with Weekly Gain

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED: The gold bull seems doomed with any early celebration these days.

After brief euphoria at having reclaimed its $1,800 perch, those long the yellow metal was hurtled back into the mid-$1,700 territory on Friday as strong U.S. retail sales for September led to a renewed spike in bond yields on speculation that the Federal Reserve might be forced to raise rates faster than it intends.

U.S. gold futures’ most active contract, December, settled at $1,768.30 per ounce on New York’s Comex, down $29.60, or 1.7%. The session low itself was $1,765.10. The only consolation was the weekly gain of 0.6%.

GOLD is trading in the up channel; further upside can be seen if not able to break out the channel.

Oil Bulls Win for 8th Week with Brent at $85; US, China Issues on Backburner

WHAT IT HAD INFLUENCED:

CRUDE OIL

WHAT HAPPENED: 

Oil bulls scored an eight-winning week as Brent hit $85 per barrel, nearing Wall Street’s $90 call, as strong U.S. retail sales and a rebounding stock market fed risk appetite despite exploding inflation.

News of China having cut crude oil import quotas for independent refiners and U.S. inventory data from Thursday pointing to a third straight weekly build in crude stockpiles were put on the backburner.

U.S. crude’s West Texas Intermediate benchmark settled up 97 cents, or 1.2%, at $82.28 per barrel. Earlier in the session, it peaked at $82.48, its highest since 2014. For the week itself, WTI rose 3.7% for an eight-straight weekly gain that gave the U.S. crude benchmark a cumulative gain of 32%. For the year, WTI was up almost 70%. 

London-traded Brent crude, the global benchmark for oil, settled up 68 cents, or 1%, at $84.86 after a three-year high at $85.09. Both Goldman Sachs and Morgan Stanley have called for $90 Brent before the end of the year.

WTI CRUDE OIL is currently in the upward channel. Further upside can be seen in the coming week.

Bitcoin tops $60,000, a six-month high, on U.S. ETF expectations

WHAT IT HAD INFLUENCED:

BITCOIN 

WHAT HAPPENED: Bitcoin topped $60,000 for the first time in six months on Friday, nearing its all-time high, as hopes grew that U.S. regulators would allow a futures-based exchange-traded fund (ETF), a move likely to open the path to wider investment in digital assets.

Cryptocurrency investors have been waiting for approval of the first U.S. ETF for bitcoin, with bets on such a move fuelling its recent rally.

The world’s biggest cryptocurrency rose to $61,869.05, its highest since mid-April, and was last up 6.9% at $61,346. It has risen by more than half since Sept. 20 and is closing in on its record high of $64,895 hit in April.

The U.S. Securities and Exchange Commission (SEC) is set to allow the first American bitcoin futures ETF to begin trading next week, Bloomberg News reported on Thursday. Such a move would open a new path for investors to gain exposure to the emerging asset, according to traders and analysts.

BTCUSD is currently in the upward channel. Further upside can be seen in the coming week.   

5 KEY EVENTS TO WATCH OUT

     Retail Sales (MoM) (Sep), U.K.

 WHEN:                                                              WHAT IT INFLUENCES:

 22nd OCTOBER 2021                                       GBP and its subsequent 

                                                                            pairs

WHAT’S HAPPENING: Retail Sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity. 

A higher-than-expected reading ought to be taken as positive/bullish for the GBP, whereas a lower-than-expected reading should be taken as negative/bearish for the GBP.

      Building Permits (Sep), U.S.

WHEN:                                                                WHAT IT INFLUENCES:

19th OCTOBER 2021                                            USD and its subsequent 

                                                                              Pairs

WHAT’S HAPPENING: Building Permits measures the change in the number of new building permits issued by the government. Building permits are a key indicator of demand in the housing market.

A higher-than-expected reading ought to be taken as positive/bullish for the USD, whereas a lower-than-expected reading should be taken as negative/bearish for the USD.

    Manufacturing PMI (Oct), GERMANY

WHEN:                                                               WHAT IT INFLUENCES:

22nd OCTOBER 2021                                          EUR and its subsequent 

                                                                             Pairs

WHAT’S HAPPENING: The German Manufacturing Purchasing Managers’ Index (PMI) measures the activity level of purchasing managers in the manufacturing sector. A reading above 50 indicates expansion in the sector; below indicates contraction.

A higher-than-expected reading ought to be taken as positive/bullish for the EUR, whereas a lower-than-expected reading should be taken as negative/bearish for the EUR.

Core Retail Sales (MoM) (Aug), CANADA

WHEN:                                                                WHAT IT INFLUENCES:

22nd OCTOBER 2021                                            CAD and its subsequent 

                                                                              Pairs 

WHAT’S HAPPENING:  Core Retail Sales measures the change in the total value of sales at the retail level in Canada, excluding automobiles. It is an important indicator of consumer spending and is also considered a pace indicator for the Canadian economy.

A higher-than-expected reading ought to be taken as positive/bullish for the CAD, whereas a lower-than-expected reading should be taken as negative/bearish for the CAD.

CPI (QoQ) (Q3), NEW ZEALAND

WHEN:                                                               WHAT IT INFLUENCES:

17th OCTOBER 2021                                            NZD and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

A higher-than-expected reading ought to be taken as positive/bullish for the NZD, whereas a lower-than-expected reading should be taken as negative/bearish for the NZD.

EQUITIES IN THE COMING WEEK

1. J&J (JNJ) to announce its Quarterly Results on 19th OCTOBER 2021, EPS estimated to 2.36 per share while revenue estimated 23.68B. 

2. Netflix (NFLX) to announce its Quarterly Results on 19th OCTOBER 2021, EPS estimated to 2.55 per share while revenue estimated 7.48B.

3. Tesla (TSLA) to announce its Quarterly Results on 20t h OCTOBER 2021, EPS estimated to 1.44 per share while revenue estimated 13.34B.

4. PayPal Holdings Inc (PYPL) to announce its Quarterly Results on 21st OCTOBER 2021, EPS estimated to 1.07 per share while revenue estimated 6.24B.

5. Intel (INTC) to announce its Quarterly Results on 21st OCTOBER 2021, EPS estimated to 1.11 per share while revenue estimated 18.24B.

TOP COMMODITIES IN THE COMING WEEK

GOLD

Technical analysis

GOLD is currently in the upward channel. Further upside can be seen in the coming week. 

SILVER

Technical analysis

SILVER is currently in the upward channel. Further upside can be seen in the coming week.

WTI CRUDE OIL

Technical analysis

WTI CRUDE OIL is trading in the up channel; further upside can be seen if not able to break out the channel.

TOP CRYPTO IN THE COMING WEEK

BTCUSD

Technical analysis

BTCUSD is trading in the up channel; further upside can be seen if not able to break out the channel.

LITECOIN

Technical analysis

LITECOIN is currently in the upward channel. Further upside can be seen in the coming week.   

 TOP CURRENCY IN THE COMING WEEK

EURUSD 

Technical analysis

EURUSD is trading in the down channel; further downside can be seen if not able to break out the channel.

GBPUSD

Technical analysis

GBPUSD is trading in the up channel; further upside can be seen if not able to break out the channel.

USDCHF

Technical analysis

USDCHF is trading in the down channel; further downside can be seen if not able to break out the channel.

TOP INDEX IN THE COMING WEEK

DOW JONES

Technical analysis

DOW JONES is trading in the up channel; further upside can be seen if not able to break out the channel.

CAC 40

Technical analysis

CAC 40 was trading in the down channel; after breakout upside can be seen in the coming days.

DATA WATCH

Technical analysis

About Author