Technicals | 10:50 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
After trading sideways for eight weeks as part of a correction from the 22,133-record high of mid-December, the Nasdaq made a marginal fresh record high last week on waning momentum before closing the week back within its recent range and below the band of support at 22,000/21,800. Its retreat left last week’s push to fresh record highs exposed as a false break higher.
Looking forward, while the Nasdaq100 remains resistance at 22,200ish we look for the Nasdaq100 to extend its fall towards the mid-January 20,538 low with scope to test critical uptrend support between 20,128 (200 day moving average) and 19,750 (uptrend support from the December 2022 low.)
Aware that if the Nasdaq 100 does recover from Friday night’s sell-off and sees a sustained break above 22,200ish, it indicates the correction is complete and the uptrend has resumed.
ASX200
Last week, the ASX200 sliced through important support at 8350/60ish, opening the way for a deeper pullback into the 8150/00 support area coming from the 200-day moving average and multi-month trend channel support.
It is imperative that the ASX200 holds above this support region to keep its upside ambitions intact.
Aware that a sustained break below 8150/8100 and then below support at 8050/8000 (from the December low) would open the way for the see the sell-off extend towards 7600.
Crude Oil
WTI Crude Oil is trading at US$69.08/bbl (-2.28%), poised to close at a two month lower, weighed on by soft US economic data and after US President Trump confirmed that tariffs on Canada and Mexico will start as scheduled on March 4th.
Crude oil is now pushing into an area of strong support between US$70 and US$65 support region and providing it holds above here we look for a rebound to follow.
Gold
Gold is trading lower at US$2911/oz (-1.37%) tumbling from record highs as investors rushed to lock in profits on gold to pay for losses in US tech stocks. We prefer to be a buyer of gold at lower levels rather than ahead of significant trend channel resistance at US$3000/oz.
Technical limitations
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