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
The rally from the September 22,977 low to the recent 25,195 high is viewed as an extending Wave V from the April 16,542 low.
Within our preferred Elliott Wave framework, once a five-wave advance is complete, the expectation is for a correction to commence.
An initial indication that a Wave V advance is complete from the April lows at last week’s 25,195 high would be if the Nasdaq100 were to see a sustained break/close below support at 24,000/23,950.
This would then open the way for a deeper pullback towards support at 23,000/22,500.
Aware that while the Nasdaq100 holds above support at 24,000/23,950, there is scope for the advance to extend towards 26,000.
ASX200
After its run to new highs in August, the consolidation viewed in the ASX200 during September has extended into October
Providing the ASX200 remains above support at 8850/40ish (sustained basis), it is likely that the ASX200 will retest the 9054-record high with a sustained break above 9054, then opening the way for the ASX200 to push towards 9250.
Aware that a sustained break of support at 8850/40ish would lead to a retest of support 8730 area.
Crude Oil
WTI Crude Oil finished lower last night at US$58.68 (down -1.48%), after hitting a five-month low of US$57.68 earlier in the session.
Its decline overnight came following the recent re-escalation in US- China trade tensions and as the IEA forecast a larger than expected surplus for 2026 of 4 million barrels per day.
Earlier this month, crude oil broke below key support at US$61.50/US$61.40ish.
While it remains below here and last week’s high of US$62.92/bbl, the risks are for a retest of the year-to-date lows US$55.30/US$55.00 area.
Gold
Gold closed higher overnight at US$4144 (up 0.84%), after hitting a fresh record high of US$4179/oz earlier in the session.
Its gains were supported by the recent re-escalation in US-China trade tensions adding to other supportive factors including rising geopolitical tensions in Europe, fiscal debt concerns, and robust buying from central banks and private investors.
Technical limitations
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