Technicals | 11:46 AM
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, Nasdaq100
Overnight gains saw the Nasdaq100 rebound above the 200-day moving average at 17,673 and away from uptrend support at 17,350, coming from the December 2022 low of 10671.
We are watching for the 17,350 level to hold (closing basis) and to provide the foundation for a short-term, possibly a medium-term rally/tradable low in the sessions ahead.
Australia: ASX200
The rejection from last Thursday’s 8148 high left a weekly “loss of momentum” candle, like the one that warned of the recent pullback on Wall Street. Additionally, it occurred from the top of a weekly trend channel, which has contained the market for the better part of 22 months.
The ASX200 has a critical layer of support in the 7600/7500 area, which includes the 200-day moving average at 7570 and the April 7492 low. This provides a good level for investors to lean against if looking to add to longs, leaving room to add towards the lower bound of the weekly trend channel at 7000.
WTI Crude & Gold
WTI Crude Oil closed higher overnight at US$73.92/bbl (0.54%), as risk aversion fears eased, and the focus returned to rising geopolitical tensions in the Middle East.
As long as crude oil remains above trendline support at US$71.50/bbl, it has the potential to rebound towards the 200-day moving average at US$78.00/bbl in the sessions ahead.
Gold finished lower overnight at US$2390/oz (-0.82%), as risk aversion fears eased, and US yields and USD rebounded.
Gold needs a sustained break above US$2450/oz to open up a push towards US$2500/oz.
Until then, further sideways trading is likely between US$2450 and US$2300/oz.
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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