Technicals | 11:00 AM
Earlier today, Tony Sycamore, Market Analyst, IG updated his views and thoughts on financial markets, including the technical analysis.
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 Friday’s (21st of November) test and hold of critical support followed by last Monday’s (24th of Novembers) rebound looks a lot like a very important inflexion point.
Specifically, it leaves the 23,854 low (21st of November) as a strong candidate to be the bottom of the correction (Wave IV) from the late October 26,182 high (Wave III), setting the stage for a retest of highs into year-end (Wave V).
As such, providing the Nasdaq100 remains above medium-term support at 24,00/23,800, we will retain the bullish bias we adopted last Tuesday morning (the 25th of November), looking for a test of the record 26182 high, before a push towards 27,000.
ASX200
After reaching an all-time high of 9115 in mid-October, the ASX200 hit a low of 8383 in late November for a -7.7% pullback, marking its deepest correction since April.
Providing the 8383 low holds, the index is expected to extend its rebound back towards 8850 by year end 2025.
Aware that a retreat through the 8383 low would negate the bullish bias and open the way for a decline towards 8200.
Crude Oil
WTI Crude Oil is trading lower at US$58.61/bbl (-1.51%), as the market continues to monitor geopolitical developments in Ukraine and Venezuela.
The situation in Ukraine has taken another turn after Putin warned European leaders that while Russia does not seek war, it is ready after accusing European leaders that its proposals of a Ukraine peace deal are aimed at sabotaging US-led efforts.
Despite this, concerns over an oversupply glut and soft demand continue to weigh on the crude oil price, which must remain above support in the mid US$50’s to avoid a deeper setback.
Gold
Gold is trading lower at US$4209/oz (-0.53%), as traders locked in profits ahead of tonight’s ADP employment report and ISM services PMI releases.
With gold up over 60% year-to-date, it is the best-performing asset class of the year.
The only question left is whether it can break above its US$4381/oz record high in the sessions ahead, or whether it is still missing another leg lower to complete a three-wave correction from the US$4381 record high.
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