Technicals | Nov 20 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
The upside momentum in the Nasdaq100 observed post the US election cooled noticeably last week, as it gapped lower on Friday through short-term support at 20,700/500.
Nonetheless, while the Nasdaq100 remains above medium-term support at 19,900/800 and mindful that Nvidia’s earnings are the key event this week, we will allow for the rally in the Nasdaq100 to resume.
The first upside target is the 21,182-record high from earlier this month, before 21,500. A good way higher is trend channel resistance at 22,400ish.
Aware that if the Nasdaq100 were to see a sustained break support 19,900/800, we would expect to see a test of the 200 day moving average at 19,000 reinforced by trend line support at 18,700.
Australia: ASX200
The ASX200 surged above its 8384-record high yesterday, reinforced by trend channel resistance at the same price.
We need to see a sustained break above here to open up a move towards 8600. Aware that yesterday’s retreat into the close leaves yesterday’s 8446.4 high exposed as yet another false break higher.
Gold
Gold is trading higher at US$2633/oz (0.81%), extending its rebound supported by safe-haven flows as geopolitical tensions in Europe continue to rise.
Russian President Putin expanded Russia’s nuclear responses to major conventional attacks in response to the Biden administration permitting Ukraine to use US long-range missiles to strike targets within Russia.
The overnight rally has taken gold back above uptrend support at US$2600/oz, leaving last week’s US$2536 low print exposed as a false break lower.
WTI Crude
WTI Crude Oil is trading higher at US$69.34/bbl (0.25%) as geopolitical tensions in Europe continue to rise.
Russian President Putin expanded Russia’s nuclear responses to major conventional attacks in response to the Biden administration permitting Ukraine to use US long-range missiles to strike targets within Russia.
A bullish engulfing candle formed on Monday from just ahead of key support in the US$66.00/$65.00 area, which suggests further upside towards US$71.50/72.50 is likely in the sessions ahead.
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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