Technicals | 11:15 AM
Earlier today, Tony Sycamore, Market Analyst, IG updated his views and thoughts on financial markets, including the technical analysis updates below.
By Tony Sycamore
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
After spending the past three weeks pushing up against weekly trend channel resistance there is now evidence that the turn lower (Wave iv) we have been looking for has commenced.
Specifically, the overnight close below uptrend support and recent lows 23,500/400 area, indicates a deeper pullback has commenced, initially towards the recent 22,673 low with scope back to previous record highs 22,200/22,000 area.
We will stay with the view that a Wave iv pullback is underway while the Nasdaq100 remains below resistance at 24,000.
ASX200
After spending the last two weeks of July consolidating its gains above 8600, the ASX200 resumed its uptrend pushing to fresh record highs this week.
Providing the ASX200 remains above short-term support at 8775ish, we expect the ASX200 to extend its gains towards the next upside target at 9000 where we would expect to run into solid profit taking.
Crude Oil
WTI Crude Oil finished lower overnight at US$62.00 (-1.12%), driven by optimism over potential Ukraine peace talks easing concerns about Russian oil supply disruptions.
Technically, providing crude oil remains below critical resistance at US$64/65 a test of support at US$60.00 is likely.
Gold
Gold finished lower overnight at US$3315 (-0.52%), as the USD gained on risk aversion flows and short covering ahead of Jackson Hole Symposium.
A sustained break above recent range highs and trend line resistance at US$3430/50ish is needed to signal that the correction from the US$3500 record high is complete and the uptrend has resumed with scope towards US$3700.
Aware that a sustained break of support at US$3300, opens up a test of recent range lows US$3255/45 area.
Technical limitations
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