Technicals | Jun 19 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
Following its month-end rebalancing-related sell-down into the end of May, the Nasdaq100 has extended gains well into overbought territory this week.
While this warns that the chances of a pullback are increasing, we may first see a test of trend channel resistance at 20,175ish as the melt-up extends.
Australia: ASX200
Technically, the view remains the ASX200 will trade sideways between 7900 and 7600 this month before an eventual break higher in the New Financial Year towards 8000.
A sustained move above resistance at 7900/10 would confirm the next leg higher has commenced.
On the downside, a sustained break below support at 7630/00 would open up a deeper decline towards 7435 (the 200-day moving average).
WTI Crude & Gold
WTI Crude Oil finished higher overnight at US$80.71 (+1.24%), supported by rising geopolitical tensions in Europe following a Ukrainian drone attack on Russian oil infrastructure in Azov and after Israel warned of an all-out war with Lebanon’s Hezbollah movement.
If the rally extends above resistance US$80/81, it will confirm a V-shaped bottom is in place at the early June US$72.48 low and warn of further gains towards US$85.00.
Gold finished higher overnight at US$2329 (+0.44%), supported by rising geopolitical tensions and soft US retail sales data.
Providing gold remains above the band of support US$2285/75ish (closing basis), it keeps the uptrend in place and, with it, the possibility of a retest of the mid-May US$2450 high.
Aware that a sustained break of support at US$2285/75 would open up a deeper pullback initially towards US$2200ish.
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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