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The Pattern Pulse – 16 May 2024

The Pattern Pulse – 16 May 2024, FP Markets

Your weekly outlook of technical patterns and structure.

The FP Markets Research Team scans the financial markets for you, highlighting clear and actionable technical structures.

Forex: Short-Term Resistance Calling for Attention on USD/JPY

H1 Timeframe –

Since topping at ¥156.77 on 14 May, short-term price action on the H1 chart for the USD/JPY has exhibited a downside bias. Of late, as you can see, recent flow chalked up a pullback from a low of ¥153.60 and has initiated the process of forming the D-leg of an ‘alternate’ AB=CD bearish formation at ¥154.95 (marked by a 1.618% Fibonacci projection ratio). The rationale behind selecting this alternate pattern, and not the 1.272% Fibonacci projection ratio (or the equidistant AB-CD), is simply down to the confluence that the 1.618% Fibonacci projection attracts: a 61.8% Fibonacci retracement ratio at ¥154.97 and a nearby 38.2% Fibonacci retracement ratio at ¥154.81.

The Pattern Pulse – 16 May 2024, FP MarketsCommodities: Coffee Futures Exhibiting Bullish Intentions

Daily Timeframe –

Following on from last week’s Coffee post, you will recall that the Research Team highlighted a combination of potential trendline supports around 190.79: trendline support taken from the low of 143.40 and a trendline resistance-turned-potential support drawn from the high of 202.85.

Adding to a possible floor forming ahead of the trendline support levels, a double-bottom pattern is in the early stages of forming at 192.41, with the neckline seen at 204.20. Should a breakout beyond the pattern’s neckline unfold, a rally to a decision point between 217.69 and 212.47 could be on the table.

The Pattern Pulse – 16 May 2024, FP MarketsEquities: S&P 500 Refreshes All-Time Highs

Daily Timeframe –

Based on softer-than-expected inflation data, the S&P 500 elbowed higher and refreshed all-time highs of 5,311 on Wednesday.

With the trend clearly still leaning in favour of bulls at the moment, any correction will likely be bought into. The support found at 5,261 and a neighbouring decision point area at 5,210-5,240 could be a zone that welcomes dip buyers, though conservative traders are likely to wait for additional confirmation here before pulling the trigger; this could be in the form of a bullish candlestick pattern, a lower-timeframe trendline resistance breach or even a fundamental trigger next week.

The Pattern Pulse – 16 May 2024, FP MarketsCryptocurrency: Inverted Head and Shoulders Pattern for BTC/USD, Anyone?

Daily Timeframe –

BTC/USD bulls have been making a comeback since forming a low of $56,478 and recently completed an inverted head and shoulders pattern (left shoulder: $59,559; head: $56,478; right shoulder: $60,165). Yesterday’s rally ventured through the pattern’s neckline, a descending line extended from the high of $67,273.

What is interesting from a technical standpoint is that the pattern’s profit objective – taken from the value between the head and the neckline and extended from the breakout point – merges with the all-time high of $73,845 at $73,756.

The Pattern Pulse – 16 May 2024, FP MarketsDISCLAIMER: The information contained in this material is intended for general advice only. It does not consider your investment objectives, financial situation or particular needs. FP Markets has made every effort to ensure the accuracy of the information as at the date of publication. FP Markets does not give any warranty or representation as to the material. Examples included in this material are for illustrative purposes only. To the extent permitted by law, FP Markets and its employees shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided in or omitted from this material. Features of the FP Markets products including applicable fees and charges are outlined in the Product Disclosure Statements available from FP Markets website, www.fpmarkets.com and should be considered before deciding to deal in those products. Derivatives can be risky; losses can exceed your initial payment. FP Markets recommends that you seek independent advice. First Prudential Markets Pty Ltd trading as FP Markets ABN 16 112 600 281, Australian Financial Services License Number 286354.



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