Technicals | 11:31 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 has been trading sideways for eight weeks as part of a correction from the 22,133-record high of mid-December.
The correction has largely unfolded within a 1000-point range between 22,000 and 21,000. A sustained break above resistance at 22,000/22,200 would confirm the correction is complete and the uptrend has resumed, targeting a move to 23,000.
Conversely, while the Nasdaq remains below this resistance level, it leaves the correction open to another leg lower towards 20,500 with scope into the 20,000/19,600 critical support region.
ASX200
Technically, the ASX200 continues to trade within the bullish trend channel it has spent the past 12 months.
After rebounding from the lower bound of the trend channel in late December, the ASX200 has since made fresh record highs to be eyeing the top of the trend channel, now at 8670ish.
Providing the ASX200 holds above support 8380/8360ish (closing basis), the uptrend remains in place, and the ASX200 can continue higher towards 8670ish.
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 higher at US$73.32/bbl (1.37%) on signs of tighter Russian and Iranian supply and as the ceasefire in Gaza appears on shaky ground.
The rebound from ahead of a strong layer of support ahead of US$70/bbl should see a test of the 200-day ma at US$74.27. A sustained break above the 200-day would open up a test of the top of the range between US$78.50 and US$80.50.
Gold
Gold is trading at US$2897/oz (-0.36%) after shying away from a fresh record high of US$2942/oz earlier in the session.
The reversal came as a wave of profit-taking hit the yellow metal and as the overbought nature of the rally became untenable.
While we aren’t inclined to bet against the longer-term uptrend in gold, a short-term correction towards support at US$2800 is certainly possible.
Technical limitations
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