Technicals | Nov 06 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
After failing to break above its mid-July 20,690 record high early last week, the first cracks for the Nasdaq100 appeared on Thursday after it closed below horizontal and uptrend support at 20,000.
Should the Nasdaq100 see a break of critical support at 19,600/500, it would indicate that a deeper decline is underway towards initial support at 18,833, coming from the 200-day moving average.
Below that, we have the September 18,400 low and then uptrend support at 18,100 coming from the December 2022 10671 low.
Aware that while the Nasdaq100 remains above the 19,600/500 support area, another test of the 20,690-record high remains possible.
Australia: ASX200
The ASX200 spent last week trading below multi-month trend channel resistance, which currently resides in the 8350/60 area and, for all but a few hours on Friday, above important support at 8110/00.
A sustained break of either of these levels is needed to indicate in which direction the ASX200’s next significant move will come.
WTI Crude
WTI Crude Oil is trading higher at US$72.10/bbl (+0.88%) bolstered by a softer US dollar and as a tropical storm threatens to impact output in the Gulf of Mexico.
Additionally, there are hopes that China’s NPC will announce the details of its fiscal stimulus package later this week.
Finally, a geopolitical bid has returned to the crude oil market on reports last week that Iran would attack Israel before the US election.
Technically, crude oil needs to see a sustained break above resistance at US$71.50/72.50 to suggest a stronger recovery towards the 200-day moving average at US$77.00/bbl is underway.
Gold
Gold is trading marginally higher at US$2741/oz (0.17%) as the USD and US yields eased ahead of today’s US election.
Gold remains well entrenched within a bullish trend channel, with support at US$2690-ish and resistance near US$2830/oz.
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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