Commodities such as Gold and Oil surged during Monday’s trading session after the sudden announcement by the Russian president over recognizing 2 regions in eastern Ukraine as solely independent entities. Later that day he ordered the Russian forces to target those areas as a peacekeeping operation.
Gold finally broke above the 1,900 level (Figure 1), reaching as high as 1,905.6. The trend is clearly in an upwards now and it has been that way ever since the price of 1,851 was breached on February the 11th of 2022.
The price is now is squeezed between 2 major supply and demand zones, being the 1,905 and 1,887. We also have an expanding triangle being formed, which in usual cases is a continuation pattern.
Figure 1 TradingView Gold
On another hand Brent crude oil prices hiked by over 3 dollars per barrel on Monday’s session, testing prices not reached in more than 6 years (Figure 2).
Figure 2 TradingView Brent Crude Oil
The price is marching towards a strong supply zone between the current price of 97.41 and the 100 psychological level.
On the opposite side, we also saw major losers in the market across all related countries. Whether in the Asia Pacific area, Europe, or the U.S market.
Major U.S indices tumbled with NASDAQ dropping more than 2.5% and S&P 500 dropping more than 1.8%.
S&P 500 is changing its trend after maintaining constant increases in prices ever since the recovery started in March 2020.
Currently, the price broke the previously (Figure 3) respected uptrend, also breaking the 200SMA which was confirmed after doing lower lows and lower highs in a form of a downward channel.
Also, worth noting that a possible head and shoulders formation is present, however not yet been confirmed.
To confirm this pattern, we need to see prices breaking below the 4,230 level and closing on a daily period.
Figure 3 TradingView S&P 500
This proves that the geopolitical turbulences are dominating the market this week, whereby economic events and figures won’t have as much effect as in previous days Unless the political confusions become clearer.
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