Technicals | May 22 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, the Nasdaq.
Last week's surge above the March high of 18,464 negated the view that the correction was missing a final leg lower and, in theory, opened up a move towards 19,000.
However, before that can occur, the Nasdaq must see a weekly close above weekly trendline resistance at 18,650.
On the downside, a break below 17,750, the same level we leaned against in March and April, would indicate that the rally has run its course.
Australia: ASX200
Last week's rally above the early May 7814 high has resulted in a more neutral bias.
A sustained close above the weekly trend channel resistance, currently at 7960ish, is needed to move to a bullish bias.
Aware that weakness below support at 7720/00 would warn that a deeper pullback is underway.
Gold
Gold finished lower overnight at US$2421 (-0.23%), as Fed speakers reinforced the message that higher rates are needed for longer to bring inflation back to target.
Gold's rally from our US$2290/70 support zone played out largely as expected, and after reaching a new high earlier this week, we moved back to a neutral bias, looking for a pullback to unfold.
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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