Technical Views On Nasdaq, ASX200 & WTI Crude

Technicals | May 29 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, the Nasdaq closed above multi-week trendline resistance at 18,650ish, coming from the November 2021 16,764 high, which opens the way for the Nasdaq to extend its gains towards 19,200/300.

We do hasten to note the S&P500 cash has yet to confirm its break above the weekly trend line resistance at 5310/20ish, and the Dow Jones has carved out a possible double top at 40,000. All of which supports the idea of continued Nasdaq outperformance.

Australia: ASX200

The ASX200 has spent the past three weeks spinning its wheels below resistance at 7910 (from the early April high) and above a strong band of support 7720/00 area.

A sustained close above 7910 and then above the weekly trend channel resistance, currently at 7975ish, is needed to move to a bullish bias.

Aware that weakness below support at 7720/00 would warn that the ASX200 has carved out a double top at 7900/10, and a deeper pullback is underway towards 7500/7400.

ASX futures closed -46 points (-0.59%) lower this morning at 7746, which should see the ASX200 cash open lower at 7720.

WTI Crude and Gold

WTI Crude Oil closed higher at US$79.83 (+2.71) on rising Middle Eastern tensions as Israeli tanks advance further into Rafah and ahead of OPEC-Plus's June 2nd meeting, which is expected to maintain production cuts.

As long as crude remains above the 200-week moving average at US$75.62, which it hasn't closed below in three years (weekly close), we remain bullish and expect crude oil to move above the 200-day moving average at US$79.90 and trade towards US$83.00/bbl. 

Gold finished higher overnight at US$2361/oz (+0.43%) on rising Middle Eastern tensions as Israeli tanks advance further into Rafah and despite higher US yields.

Technical limitations

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