Technicals | Jul 17 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, Russell2000
Whether the rotation out of tech stocks and into small caps cascades into a deeper pullback for the Nasdaq remains unclear.
The formation of another potential loss of momentum weekly candle in the Nasdaq last week signals a cautionary note. However, some downside follow-through is needed to suggest a deeper pullback is underway.
Initial support is viewed at 20,000, and if that support were to break, we could look towards uptrend support at 19,500/400, coming from the April 16,973 low.
In the meantime, and as flagged above, there appears to be further upside in the Russell, with its all-time high from November 2021 more than 8% higher.
Australia: ASX200
Last week’s break above 7910.5 ended three months of corrective price action and confirmed that the uptrend had resumed.
The initial target for the up-move is weekly trend channel resistance at 8,000-ish. If it can cement a close above 8000 on Friday, it opens the way for the rally to extend to 8,150.
WTI Crude & Gold
WTI Crude Oil finished lower at US$80.76 (-1.40%), its third day of falls, as the impact of China’s weaker economic data continues to linger. We favour the pullback to extend towards a layer of horizontal support at US$80.50/US$79.50, reinforced by the 200-day moving average at US$79.05.
Gold finished higher at US$2468 (1.92%), a record high as markets continue to position for a September rate cut from the Fed. The break and close above the top of its three-month range highs US$2430/50 area opens the way for a push towards the next upside target at US$2500.
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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