Technicals | Jul 25 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, Nasdaq100
Overnight, the Nasdaq100 plunged below uptrend support at 19,500/400, creating a high degree of technical degradation.
We look for the decline to deepen towards weekly uptrend support and the March high in the 18,500/400 area.
Aware that the Nasdaq100 needs to reclaim resistance at 20,000 to ease downside concerns.
Australia: ASX200
On Monday, the ASX200 tested support at 7910/00, the level which capped it for three and a half months before its recent break higher.
Providing the ASX200 holds above 7900 (on a sustained basis), a retest and break of the record high at 8083 is possible.
However, if the ASX200 were to see a sustained break below 7900/7850, it would expose the rally to last week’s 8083 high as a false break higher and warn that a deeper pullback is underway.
WTI Crude & Gold
WTI Crude Oil finished higher at US$77.59 (+0.82%), snapping a four-session losing streak following a fall in US crude oil inventories (-3.71m vs -2.05m expected).
Nonetheless, with the peak demand of US driving season in the rearview mirror, tepid growth data in China and optimism around a cease-fire in Gaza building, crude oil appears destined for a test of uptrend support at US$74.00.
Gold finished lower at US$2397 (-0.51%) after hitting an intraday high of US$2432 earlier in the session.
The formation last week of a “loss of a momentum” weekly candle negated our bullish bias in gold and warned of the possibility of a deeper decline towards range lows US$2300/2275 area.
Technical limitations
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