Technicals | Aug 28 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
After its significant rebound from the August low, and ahead of Nvidia’s earnings report and the typically challenging month of September, we are 50/50 as to what comes next for the Nasdaq100.
Specifically, we are uncertain whether the sell-down to the early August low completed a much-needed pullback, with a test and break of the July 20,690 high to follow.
Or whether the early August sell-off was the first leg of a correction and is missing another leg lower.
A sustained break of support at 19,400 after Nvidia’s earnings report would argue in favour of the latter.
In contrast a sustained break above 20,000 after Nvidia’s earnings report would support the case of the former.
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 surprised to see a retest of the 7600/7500 level before year-end.
WTI Crude & Gold
WTI Crude Oil finished lower overnight at US$75.53/bbl (-2.44%) after running into profit-taking ahead of the 200-day moving average at US$77.77 and after an influential US investment bank reduced its price forecast for Brent oil prices by -US$5bbl to US$70-85.
Last Friday, we moved to a positive bias in crude oil after it based on weekly trendline support at US$71.50ish.
After reaching our initial target at US$77.50, we remain positive, looking for another leg higher towards the early August US$80.16/bbl high.
Gold finished higher overnight at US$2524/oz (+0.27%), continuing to consolidate just below its recent US$2531 record high supported by safe-haven flows and expectations of Fed rate cuts.
Provided gold remains above support at US$2480/70ish it can extend gains towards US$2600 in the sessions ahead. Otherwise, a return to US$2400 is likely.
Technical limitations
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