Technicals | Mar 26 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
We have been of the view that the bounce in the Nasdaq100 from the 19,152 low of mid-March is a short-covering rally/corrective bounce.
However, the gap higher on Monday night and acceleration raise some concerns around this interpretation, particularly when combined with the rebound back above the broken uptrend line, as viewed on the chart below.
The price action in the coming sessions in relation to the 200 day moving average at 20,300 is shaping now as a pivotal battle to the fortunes of the Nasdaq100.
While the Nasdaq100 remains below the 200-day moving average at 20,300, allow for a retest of the 19,152 low.
Aware that if the Nasdaq100 should see a sustained move above the 200 day ma it opens up the interpretation that the decline to the 19,152 low completed a corrective pullback from the 22,222 high and that the uptrend has resumed.
ASX200
After slicing through several key support levels in early March, the ASX200 found some support in mid-March in the 7730/40 area.
Shortly afterwards, as noted in our ASX200 Afternoon report on 18 March, we stated that providing the ASX200 remained above the 7730/40 support area, we expected to see a bounce towards 8050 in the sessions ahead.
At this point, the rally is playing out largely in line with our expectations.
Crude Oil
WTI Crude Oil is trading higher at US$69.24/bbl (+0.19%), on track for a fifth consecutive day of gains, on concerns over tighter supply following President Trump’s proposal of a 25% tariff on countries importing Venezuelan oil and gas.
The break above short-term resistance at US$68.50, earlier this week increases the likelihood that crude oil based at weekly support in the mid US$60s in line with our expectations, and it can extend its bounce towards the 200-day moving average at US$72.91/bbl.
Gold
Gold is trading higher at US$3020/oz (0.40%), snapping a three-day losing streak, boosted by lower yields and a softer USD after weak US economic data.
Gold needs to see a sustained break above resistance at US$3050/60ish to signal that the next leg higher is underway.
Until then, allow for some corrective price action between US$3050ish and US$2950ish.
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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