Technicals | 11:00 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
The decline from the April 9, 19,234 high is best viewed as the fifth leg of an unfolding five-wave decline from the 22,222 record high, which warns of a retest and break of the 16,542 low towards 16,000.
Aware that if the Nasdaq100 were to first see a sustained break above the 19,234 high and then above the 200-day moving average, currently at 20,223, It would negate the downside risks and be an initial warning that the correction is complete, and the uptrend has resumed.
ASX200
From its mid-February high of 8615, the ASX200 fell -882 points, or -10.23%, to a low of 7733 before rebounding back to 8014.
From the late March 8014 high, the ASX200 fell -844 points, or -10.5%, to the early April 7169 low, before rebounding back above 7800.
A sustained move above 7800 is needed to increase confidence that the correction from the 8615 is complete at the 7169.2 low.
Crude Oil
WTI Crude Oil finished higher overnight at US$63.67, up 2.02%, bolstered by new US sanctions on Iranian crude oil exports and on reports that US Treasury Secretary Scott Bessent believes there will be a de-escalation in US-China trade tensions.
Technically, a move above resistance US$65/US$67 is needed to negate downside risks in crude oil.
Until then, a retest of support at US$55.00 is likely.
Gold
Gold finished lower overnight at US$3381, down-1.26%, reversing from its record high of US$3500 on reports that US Treasury Secretary Scott Bessent believes there will be a de-escalation in US-China trade tensions.
After its parabolic rise, the overnight rejection from the US$3500 leaves in place signs of a blow-off type high and sets the scene for a modest pullback.
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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