Remain flat with #SP500 | 20 May 2022

 #XAUUSD weekly

Technical observation

The commodity on the weekly chart above has been trading with an increasing bearish bias for the past four consecutive weeks and this week I expect a continuation of this downwards movement to the supportive zone it established at 1699.59-1684.80 followed by a rejection within it to pick long positions with my take profit at 2074.38 and stop loss at 1569.97. In case of a clear break above the level 2074.38, I expect a further surge to the upper side; on the other hand should there be a clear break below the zone I have mentioned above, I expect the value of this commodity to surge to the supportive level 1460.07 after a pullback to the broken zone.

 Trade recommendation

Wait for a correction to the zone 1699.59-1684.80 to buy #XAUUSD.

#CAC40 weekly

Technical observation

Last week the value of #CAC40 rose with a big green candle and as long as it is sustained above the supportive zone 6145.2-6063.8, I expect a continuation of this upwards movement towards the resistance level 7226.1. If you picked long positions within the zone I mentioned earlier, my advice is remain in the trade with your take profit at 7226.1 and stop loss at 5693.7. In case of a break above the level 7226.1, remain long after a correction to the broken line, however, should there be a clear penetration below the supportive zone 6145.2-6063.8, I expect the value of this commodity to plummet towards the level 4868.4.

Trade recommendation

Remain long with your take profit at 7226.1.

#SP500 weekly

Technical observation

On the weekly chart above #SP500 declined below the zone 4254.4-4203.8 and last week it rallied further to the lower side. This week I anticipate a momentum to the zone I mentioned above followed by a rejection within it to pick short positions with my take profit at 3657.9 and stop loss at 4512.2. As long as the value of this commodity is sustained below zone 4254.4-4203.8 I can only recommend short positions, on your way downwards the key levels to look for include 3657.9, the supportive zone 3031.0-2985.5 and the lower supportive level 2186.6. Right now remaining neutral is ideal than picking any positions.

 Trade recommendation

Remain flat.