Technicals | Oct 16 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
Last week, the Nasdaq locked in a fifth straight week of gains, hitting its highest level since mid-July. Provided the Nasdaq 100 remains above short-term support and a more important layer of support at 19,600/500, we look for a test and break of the mid-July 20,690 high before a push towards 21,500.
Aware that if the Nasdaq100 were to see a sustained break of support at 19,600/500, it would warn that a deeper decline is underway towards support at 18,500/400, which includes the 200-day moving average and the September 18,400 low. Below that, support is viewed at 18,000, coming from the uptrend drawn from the December 2022 10,671 low.
Australia: ASX200
The ASX200 yesterday resumed its battle with multi-week trend channel resistance, which currently resides in the 8300/10 area.
A sustained break and close above here would set the ASX200 up for a run towards 8450 into year-end.
Conversely, a failure to see a sustained close above 8300/10 combined with a fall through support at 8110/00 would warn that a medium-term high has been struck and that a deeper pullback is underway.
WTI Crude
WTI Crude Oil finished lower overnight at US$70.94/bbl (-3.91%), extending its falls after being hit by the trio of headwinds we highlighted yesterday, which, to recap, were 1/ OPEC once again revised lower its demand forecasts, 2/ China’s trade balance data showed China’s oil imports fell for a fifth month and 3/ reports that Israel would not target Iran’s nuclear or oil facilities.
Provided crude oil remains below the US$71.50/72.50 resistance area (this level continues to fluctuate between key support and resistance), the risks are for a deeper decline into the mid US$60’s.
Gold
Gold finished higher overnight at US$2662/oz (0.51%), supported by safe-haven flows and a sharp fall in US yields. Provided gold remains above key support at US$2600, it keeps the uptrend intact, and with it, prospects of another leg higher to US$2700.
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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