Top Instruments to Trade in May

Top Instruments to Trade in May



May is expected to be as efficient as April. Traders’ proverb “May sell and go away” will be very correct this year again. The market tendency to continue current trends will remain in force not only in May. Particular attention should be paid to three instruments, which are expected to be extremely volatile implying both corrections and the downtrend continuation.

Brent

In the weekly chart, Brent broke the psychologically-crucial of 70.00. In May, the instrument is expected to continue the current uptrend towards the next target at 80.00. Besides, fundamental news relating to Iran-US-China conflict sends oil prices higher. As long as there is uncertainty in this matter, bulls will continue pushing oil prices upwards. After reaching 80.00, the price may take a break for a consolidation or a possible correction towards 70.00. After the correction, the uptrend will continue. From the technical point of view, the instrument is forming the fifth rising wave. 80.00 is the target of the first structure of this wave.

BRENT

As we can see in the daily chart, after breaking 70.00, the uptrend got even faster. The price is expected to reach the target of the first wave in May as well. After reaching the target, the instrument may start consolidating near the highs. In case this range is broken to the downside, there may be a correction with the target at 70.00. The longer the Iran issue continues, the more time the bullish rally may take place. After the correction, the uptrend will resume.

BRENT

XAUUSD (Gold)

In the daily chart, Gold broke the psychologically-crucial of 1290.00. As long as the USD is strong fundamentally, Gold will have very few chances to rise. From the technical point of view, one should pay attention to Head & Shoulders reversal pattern. In May, the instrument may continue falling towards the next target at 1250.00. After reaching 1250.00, the price may take a break for a consolidation or a possible correction. After the correction, the downtrend will continue to reach 1230.00.

XAUUSD

As we can clearly see in the H4 chart, the instrument broke 1290.00 with a consolidation range. By now, the price has already formed another descending structure towards 1267.00 along with the correction at 1282.00. The target at 1250.00 is expected to be reached in the first half of May. After reaching it, the instrument may form a new consolidation range. If the price breaks the range to the upside, the instrument may be corrected to return to 1290.00; if to the downside – resume trading inside the downtrend with the target at 1230.00. One should also note that if there are corrections on global markets, investors may turn to “safe haven” assets again, including Gold.

XAUUSD

EURUSD

As for a vast number of currency pairs, one should pay particular attention to EURUSD and not only because it is the most popular currency pair in the industry. In the weekly chart, this pair broke a very important from the technical point of view level at 1.1200. Throughout May, the downtrend is expected to continue towards the next target at 1.1000. After reaching it, the price may take a break for a consolidation or a possible correction and then resume trading inside the downtrend with the target at 1.0850. A good piece of news for the European currency will be any positive statistics from Germany, because right now it is the Euro Area’s soft spot.

EURUSD

As we can see in the daily chart, after breaking 1.1200, the pair may continue the downtrend. From the technical point of view, the price is forming another structure of the third descending wave with the short-term target at 1.1000. After reaching it, the instrument may start a new consolidation range. If later EURUSD breaks the range to the upside, the pair may be corrected to return to 1.1200; if to the downside (in case there is no positive news) – resume trading inside the downtrend with the target at 1.0850.

EURUSD

Disclaimer:

Any predictions contained herein are based on the authors' particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

Open Trading Account



Left unedited for writing style, spelling or punctuation.


Previous article

Healthcare Sector Down after News on Another Reform

The US will be electing president in 2020, but the candidates-to-be are already talking actively, if not aggressively; one of such speeches tore down the entire sector. The healthcare is likely to become the sector in question the election campaigns will be based upon. What then happened and why does it need any reforms, shortly […]

Next article

43% Profits in 20 Days

Recently, we have published two posts here and here where we spoke on some stocks that could rise by 50% or more before late 2019. Goldman Sachs (NYSE: GS) had published this before, and we tried to analyze it in technical terms. Today, we are going to recap what happened to these stocks and how […]