Technicals | Mar 19 2025
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
Last week, the Nasdaq100 broke below uptrend support at 19,900 from the December 2022 low, adding to the technical damage that followed its break below the 200-day moving average the previous week.
We view Friday’s bounce from oversold levels as the start of a short-covering rally/corrective bounce. It is viewed as a short-covering rally because we can’t find any compelling reason for US equity markets to undertake a more sustainable rally back to year-to-date highs in the current climate.
Bounces are likely to encounter short-term resistance initially at 20,000, stemming from the broken uptrend, before encountering stronger resistance at the 200-day moving average, currently at 20,275.
Above here, the 50% Fibonacci retracement of the decline from the 22,222 high to the 19152 low sits at 20,694.
ASX200
After slicing through several key support levels just above 8,000 in early March, the ASX200 found some support last week in the 7,730/40 area.
Provided the ASX200 remains above support 7730/40 area, allow for the ASX200 to undertake a short covering rally towards 8050ish in the sessions ahead.
Crude Oil
WTI Crude Oil is trading at US$66.60/bbl (-1.44%), retreating from a two-week high of US$68.50 after Russian President Putin and US President Trump agreed to a 30-day ceasefire on energy infrastructure targets in Ukraine as an initial move towards a wider peace plan.
This development counterbalanced a rise in geopolitical tensions in the Middle East, which arose after Israel launched strikes on targets in Gaza and the US targeted Houthi positions in Yemen earlier in the week.
Crude oil looks poised for another test of the crucial support zone between US$65 and US$62/bbl.
Gold
Gold is trading higher at US$3034/oz (1.10%), just shy of the session’s new record high of US$3,038/oz.
The rally overnight was driven by safe-haven flows on tariff concerns and escalating geopolitical tensions in the Middle East.
Gold is nearing the upper boundary of a bullish trend channel near US$3,045, and a -US$50 pullback from near this level wouldn’t be too much of a surprise.
Technical limitations
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