Technicals | Dec 18 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 consolidated its recent gains after reaching and breaching our next upside target of 22,000 earlier in the week. It remains within touching distance of weekly trend channel resistance at around 22,350, which we expect to halt the rally at least temporarily.
On the downside, a sustained fall below interim support at 21,200/21,000 and then below 20,315 is needed to indicate that a short-term high is in place and that a pullback is underway towards the 200-day moving average at 19,320, reinforced by uptrend support near 19,050.
Australia: ASX200
The ASX200’s December pullback, which played out via our head-and-shoulders topping pattern, appears complete at yesterday’s 8236 low.
We suspect yesterday’s rebound marked the start of the Santa Claus rally for 2024.
Provided the index remains above yesterday’s 8236.7 low, we look for a retest of the 8514 high in the weeks ahead.
Gold
Gold is trading lower at US$2646/oz (-0.25%) ahead of tomorrow’s FOMC meeting.
While gold remains below the double top at US$2721, we see the risks as being for a break of important horizontal and trendline support at US$2600.
This would then warn of a deeper decline towards medium-term support at US$2465 (coming from the 200-day moving average and wave equality from the US$2790 high).
WTI Crude
WTI Crude Oil is trading lower at US$69.79/bbl (-1.30%), weighed down by profit-taking after last week’s 6% rally and the release of this week’s soft Chinese and German economic data.
Crude oil desperately needs a new catalyst to break out of its current trading range between US$66.00 and US$72.50/bbl.
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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