Technicals | Jun 05 2024
Earlier today, Tony Sycamore, Market Analyst, IG updated his views and thoughts on financial markets, including the technical analysis updates below.
All material has been re-published with permission and does not by association represent FNArena's views (we have none, we simply report).
First Up, The Nasdaq
Our recent updates highlighted the mixed signals in the three key US equity markets: the Nasdaq, the S&P500 and the Dow Jones.
The S&P500's rejection of weekly trend line resistance at 5310/20ish extended last week, as did the Dow Jones rejection from the double top at 40,000.
The Nasdaq100, as viewed below, has closed back below weekly trendline resistance. Enough reasons, in our opinion, for a more cautious stance.
Australia:ASX200
After the passing of last week's storm into month end, we think the final month of FY 2024 will see a period of sideways trading as the ASX200 traces out a five-wave "abcde" type Elliott Wave correction before an eventual break higher.
WTI Crude and Gold
WTI Crude Oil closed lower overnight at US$73.25 (-1.31%), as OPEC-Plus's weekend announcement it will increase supply in October has perfectly coincided with mounting evidence of a US economic slowdown.
If this week's fall below the 200-week moving average at US$75.62 is confirmed at the end of this week, it would warn that a deeper decline into the high to mid-US$60s is underway.
Gold closed lower overnight at US$2327 (-1.01%), giving back the previous night's gains as the anticyclical US dollar found support on concerns that the US economic slowdown will weigh on global growth.
After catching the move up to the US$2450 high in May, we are currently neutral, waiting for more attractive buying levels.
Technical limitations
If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.
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