Technicals | 10:45 AM
Earlier today, Tony Sycamore, Market Analyst, IG updated his views and thoughts on financial markets, including technical analysis updates.
First Up, Nasdaq100
From its late-March low of 22,841, the Nasdaq100 launched a powerful 35% rally in just over nine weeks to reach a record high of 30,762 in early June.
The correction that followed and has now entered a fourth month and providing the Nasdaq100 remains above short-term support at 28,800ish, we expect a retest and break of the 30,762-record high, before a move to 32,000.
Aware that a sustained break below 28,800ish would negate the short/medium term bullish view and open the way for a retest of trend-channel support now near 27,600.
ASX200
The ASX200 spent the better part of four months (between the start of April and the end of July) within an 8500–9000 range before releasing that pent-up energy at the start of August to hit a fresh record high of 9296.7.
From that high we were expecting a pullback towards 9000.
Provided this pullback holds above the 9000/8900 support region (former top of range resistance – now support) and the 200-day moving average at 8813, we look for the uptrend to resume and a retest and break of the 9296.7 record high.
Aware that a sustained break below 8800ish would indicate the ASX200’s break higher in August has failed and it would likely see another period of range trading between 8500-9000.
Crude Oil
WTI Crude Oil finished higher overnight at US$94.25 (up 3.32%), its first close above US$94 since early June.
The overnight gains followed another step-up in tensions in the Middle East which included another round of Houthi strikes on Saudi energy facilities, reports of further US hits on Iranian tankers, and Iranian missiles aimed at Jordan as the session closed.
With neither side willing to blink, and after clearing the late July US$93.50 high, the path of least resistance for crude oil is higher towards the next upside resistance at US$97.50.
Gold
Gold finished lower overnight at US$4355 (down -1.14%) weighed down by the unrelenting rise in energy prices after the latest step-up in Middle East tensions outlined in the oil section above and by risk-aversion flows.
Technically, gold’s decline below the 200-day moving average at US$4526 at the end of last week inflicted some short-term technical damage, but it has not changed the medium-term view that gold based at the late-June US$3942 low.
The preference remains to buy pullbacks, looking for a push toward US$5000.
All material has been re-published with permission and does not by association represent FNArena’s views.
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