Technicals | Sep 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
Last week’s rally in the Nasdaq100 saw it finish the week above the downtrend resistance at 19,600/20, coming from the July high of 20,690.
The break and close above resistance at 19,600/20 is an initial indication that the correction from the July 20,690 high is complete and that the uptrend has resumed towards 20,690, before 21,500. A sustained break above resistance at 20,000 would further increase confidence in this view.
Conversely, a failure to secure a sustained break above the 20,000 level would warn that the correction from the 20,690 high continues and may see another leg lower towards the 200-day moving average at 18,300 and uptrend support at 18,000.
Australia: ASX200
On Friday, the ASX200 ran head-on into our band of daily and weekly trend channel resistance at 8230/50ish, from which we saw initial rejection.
A loss of support at 8120/00ish is needed for Friday’s rejection to indicate that a deeper pullback towards 7900 is underway.
Aware that should the ASX200 break above resistance at 8230/50 it opens the way for the index to rally towards 8350.
Gold
Gold finished higher overnight at US$2662/oz (+1.29%), bolstered by the easing measures announced in China yesterday and rising Middle Eastern geopolitical tensions.
While gold has extended its gains further into overbought levels, there is scope for the rally to extend to US$2700/oz before a snapback occurs.
Crude Oil
WTI Crude Oil finished higher overnight at US$71.56/bbl (+1.69%), bolstered by the easing measures announced in China yesterday and rising Middle Eastern geopolitical tensions.
A sustained break above resistance at US$72.50 is needed to put crude oil on a firmer technical footing and to avoid a retest of the recent US$65.27 low.
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.
Find out why FNArena subscribers like the service so much: “Your Feedback (Thank You)” – Warning this story contains unashamedly positive feedback on the service provided.
FNArena is proud about its track record and past achievements: Ten Years On
