Technicals | Aug 14 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, Nasdaq100
The Nasdaq100 extended gains overnight from our key support at 17,700/17,400, consisting of the 200-day moving average at 17,707 and uptrend support at 17,400 (from the December 2022 low of 10671).
Provided the index remains above support at 17,700/400 we expect the rally to continue towards 19,500.
Australia: ASX200
The ASX200 has a critical layer of support in the 7600/7500 area, which includes the 200-day moving average at 7591 and the April 7492 low.
This region provides a solid level for investors to lean against 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 finished lower overnight at US$78.35 (-2.14%) after the IEA forecast a slowdown in demand for 2025, following OPEC’s recent cuts to its 2024 demand projections.
Additionally, some of the geopolitical premium built into crude oil was removed overnight as the expected response from Iran against Israel, is yet to materialise.
Since last Tuesday, we have held a positive outlook for crude oil, leaning against multi-week trend line support at US$71.50. Providing crude oil remains above the support from the 200-day moving average at US$78.00 (sustained basis) we expect the rebound to resume towards US$81.50/bbl.
Gold finished lower overnight at US$2465 (-0.29%) as a portion of the geopolitical premium built into gold was removed as the expected response from Iran against Israel has yet to materialise.
A sustained break above resistance at US$2480/85 coming from recent record highs would open the way for gold to push towards US$2550/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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