Identifying the Potential of Trends for the Week Ahead (12/21/15)

Alexey Panasenko |

Forex technical analysis helps to answer the questions: How to interpret Forex rates? Buy? Sell? Close a trade? Take profit or let it run for some more time? Will it face reversal or go trhough correction? Accept a loss and “flip over” or wait for some more time? Finally, how to define Forex trend?” All these questions drive a trader (mainly beginning) crazy, if he does not know the answer. By the way, who will dare to claim to know the answer? Forex exchange rates are cruel towards one's self-confidence and arrogant manner. Nevertheless, it is subject to regularities and daily techical analysis. There are plenty of strategies on Forex trend lines. We are not so much interested with the direction of fx rate along major lines (this is interesting too, though) as with the Potential of the Forex trend. The main purpose of our Forex technical analysis report named "Potential of Trend" is to find if current price goes through correction either we face a trend.

S&P 500

Monthly: the price continues to decline towards the bottom Bollinger band (1864.9) within the technical correction

Weekly: more localized support 1908.0 (the bottom Bollinger band)

Daily: broken bottom Bollinger envelope, so now we consider only downward scenarios - either a direct drop to 1908.0, or drop through a pre-rollback to the middle band (2065.8. see the blue arrow).

Expectations: waiting the price to fall to 1908.0. a preliminary rollback to 2065.5 is possible

Solutions: sales to 1908.0


Monthly: still the only relevant medium-term scenario is a further drop to 24.54 (the bottom Bollinger band)

Weekly: another breakthrough bottom of the envelope, so bulls have no chance, except, perhaps, the short-term upward correction in the area of ??42.06

Daily: local support (and the minimum target for the week) - 35.66

Expectations: fall to 35.66 and possibly even lower, & nbsp; the overall decline to 24.55.

Solutions: keep selling. Traders operating within the weeks may take profit around 35.66


Monthly: more pressure from ADX, so beginning of a new strong drop is possible in the near future. On the other hand, New Year market could delay any trend

Weekly: key support 1048.22 (the bottom Bollinger Band). We see the same active ADX, so we are waiting for drop no later than from the middle of the band (1116.55)

Daily: horizontal channel 1052.28-1086.02

Expectations: touch of 1086.02 and start of drop to 1052.28

Solutions: sales from 1086.02 to 1052.28

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


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