Technicals | Aug 21 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
At this point, we believe the next significant move is a 50/50 proposition.
As such, we remain on the sidelines for the time being with an eye on this week’s key events outlined above, NVIDIA’s earnings report on August 28 and the typically challenging month of September.
Australia: ASX200
The ASX200’s rebound from the 7600/7500 support area, which includes the 200-day moving average, has reinforced its importance as the downside level to watch going forward.
While all the focus is currently on the topside and whether the ASX200 can break its all-time 8148 high, we wouldn’t be at all surprised to see a retest of the 7600/7500 level before year-end.
WTI Crude & Gold
WTI Crude Oil finished lower at US$73.17/bbl (-0.67%) as hopes for a Middle East ceasefire and economic weakness in China outweigh expectations of a first Fed rate in four weeks.
We are watching for signs of basing near multi-week trend line support at US$72.00 to return to a positive bias in crude oil.
Aware that if crude oil does see a sustained break of support at US$72.00/US$71.50, it would warn a deeper decline is underway towards US$67.00/bbl.
Gold finished higher at US$2514/oz (+0.39%), a fresh record high, ahead of tonight’s revisions to US payrolls data, tomorrow’s FOMC meeting minutes, and Fed Chair Powell’s speech at Jackson Hole, all of which are anticipated to be dovish.
Despite its close above trend channel resistance, we noted some bearish divergence evident via the RSI indicator and need to see gold maintain altitude above recent highs of US$2480ish for it to extend gains towards US$2600/oz in the sessions ahead.
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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