Technical Views on Nasdaq, ASX200 & Gold

Technicals | Jun 26 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

The Nasdaq100’s rally from the 18.900 low of 18 May took the index firmly into overbought territory and resistance coming from the trend channel viewed on the chart below.

We think a combination of technical selling, profit taking, and month-end/quarter-end rebalancing selling flows have contributed to the Nasdaq’s recent pullback, which has scope to extend towards support 19,300 area.

Overall, while the Nasdaq100 remains below 20,000, there is room for the pullback to extend before the uptrend resumes. Aware that a move above 20,000 indicates the uptrend has resumed. 

Australia: ASX200

With three trading sessions left until the end of the month, our view that the ASX200 would trade sideways during June has been spot on.

A break above 7900/10 is needed to indicate the period of range trading is complete and that a move towards 8,000 is underway. 

WTI Crude & Gold

WTI Crude Oil finished lower overnight at US$80.83 (-0.98%), as API data showed crude oil inventories increased by 0.914m barrels for the week ending June 21, in contrast to expectations for a draw of -3m barrels. Providing crude oil remains above the 200 day moving average at US$79.52 allows for the recent rebound to extend towards US$85.00. 

Gold closed lower overnight at US$2319 (-0.64%), undercut by a rise in the US dollar following hawkish Fed speak. 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 below US$2275ish would lead to a deeper decline towards US$2200. 

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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