Technicals | 10:30 AM
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 tested important uptrend support 18,600 area. While evidence of a capitulation-style low is still lacking, providing the Nasdaq100 remains above support in the 18,600/400 area (daily closing basis), we expect the uptrend to resume.
Aware that a sustained break below 18,600/400 would warn that a deeper decline is underway towards the 200-day moving average at 17,667.
Australia: ASX200
Last week, the ASX200 tested and successfully held our 7900/7850 support region, which keeps prospects of a retest and break of the 8083 record high in place.
Aware that a sustained break below 7900/7850 would indicate the recent break higher has failed and opened the way for a deeper pullback initially to 7700.
WTI Crude & Gold
WTI Crude Oil finished lower at US$74.73/bbl (-1.42%), its lowest close in eight weeks, on lingering concerns about China’s demand outlook, ongoing optimism towards a cease-fire in Gaza and expectations that this week’s OPEC-Plus meeting is unlikely to deviate from its current plan to start unwinding cuts from October.
While crude oil remains below the 200-day moving average at US$78.66, downside risks remain towards trendline support in the US$74.20/00 area. A sustained break below US$74.00 would open up a move towards US$70.00/bbl.
Gold finished higher overnight at US$2410/oz (1.14%) eyeing the top of its US$2450/US$2275 range ahead of tomorrow’s FOMC meeting. We are neutral gold ahead of this week’s FOMC and NFP data.
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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