Technicals | 11:00 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
The Nasdaq100’s rejection from its 22,133-record high early last week leaves in place a possible double top formation at 22,00ish.
The expectation is for the Nasdaq100 to extend last week’s falls as part of a correction to test and break the mid-January 20,538 low before probing a band of critical support 19,800/500 area coming from the 200-day moving average and uptrend support from the December 2022, 10440 low.
If the Nasdaq100 saw a sustained break of the 19,800/19500 support zone, it would warn a deeper correction is underway towards the September 18,806 low
To negate the downside risks the Nasdaq100 would need to see a sustained break above resistance at 22,000/22,200 to suggest the current pullback is complete and the uptrend has resumed.
ASX200
Technically, the ASX200 has been trading higher within a bullish trend channel for over 12 months.
After rebounding from the lower bound of the trend channel in late December, the ASX200 last week traded towards the top of the trend channel now at 8650ish.
Providing the ASX200 holds above support 8380/8360ish (closing basis), the uptrend remains in place, and the ASX200 can continue higher towards 8660ish.
Aware that a sustained break below 8380/60ish would swing the focus towards the bottom of the trend channel currently at 8070/50ish.
Crude Oil
WTI Crude Oil is trading lower at US$72.60/bbl (-0.77%), rebounding after US President Trump ordered the US Treasury Secretary to “maximise economic pressure” on Iran to stifle its oil exports.
Technically, the overnight US$70.67/bbl low and rebound comes from just ahead of the US$70/68 support we have been targeting. Provided it remains above here, the risks are for a rebound towards the US$75.00/20 resistance area.
Gold
Gold trades higher at US$2845/oz (1.06%) a fresh record high as the USD and US yields eased following last night’s cooler-than-expected JOLTS Job Openings and Factory Orders data.
Last week’s break above the former double top at US$2790 clears the way for a move towards US$2850 (almost there now), with scope towards the top of the bullish trend channel at US$2950/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.
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