1/ New 52-Weeks Highs
2/ Defense Joins the Party
3/ Looking for Breakout
4/ Losing Strength
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1/ Follow the Spread
The S&P 500 index for insurance companies has achieved a new all-time high and is poised to surpass a base that has been established for almost two years. The price has broken through the resistance zone on its fifth attempt and is poised to sustain the trend it has followed since the first quarter of the year.
As long as we are above the 629 level, the path of least resistance is higher.
2/ Defense Joins the Party
The defense industry has recently broken out of a two-year sideways trading range.
It experienced two false breakouts before finally surging above the resistance level. The primary bullish confirmation came from a hammer candle at the previous resistance level, which was further validated by a strong bullish candle yesterday.
What’s next? The price must firmly stay above this level to sustain the uptrend and aim for higher levels.
3/ Looking for Breakout
Fair Isaac & Co., Inc. (FICO) rises by +3.57%, setting a new all-time high and breaking above the previous resistance zone.
FICO exhibits signs of leadership in an industry that has yet to surpass resistance levels but remains bullish. The price is starting to break the consolidation pattern that followed the establishment of the previous high, indicating a desire to maintain the upward trend that has persisted since 2022.
4/ Losing Strength
The WTI (West Texas Intermediate) crude oil price has been oscillating sideways, hovering around $85.
The relative strength ratio compared to the S&P 500 reveals a series of lower highs, indicating a weakening position compared to the equity market. It seems that crude oil may be waiting for developments related to the dollar and the geopolitical conflict in the middle east, which could lead to price increases if the conflict escalates or expands in scope. If the price were to drop below the $85 level, there is a high likelihood that it could decline to approximately $70. Conversely, if it manages to hold $85, it must harness this momentum to avoid losing steam and, ultimately, risking a decline.
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Originally posted 18th October 2023
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