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Analysis

Charts of the day: gold signals further down pressure, Nasdaq futures gain bullish momentum

gold

Risk assets have finally found their footing in the wake of US earnings season, as optimism emerged ahead of big tech earnings being released throughout the month.

The tech-heavy Nasdaq index jumped 2%, while risk-on trades sent gold lower on Tuesday. From a technical perspective, gold signals imminent further down pressure, and the Nasdaq may continue to gain bullish moments in the near term. 

Gold - Daily chart

A further bearish break down at the 20-day moving average is in play.

(Click to see the enlarged chart)

Key technical elements:

  • A bearish hammer followed by a bearish candlestick signal the uptrend may have topped.
  • Stochastic formed a dead cross and point down from the overbought territory, indicating gold price may fall into a downtrend
  • The bullish momentum is fading in MACD, also with a dead cross forming ahead
  • The crucial intraday support is at the 20-day moving average, pricing around 1945, but it may have already broken down, approaching to the next support at the 50-day moving average at 1931.

Key price levels:

Supports: 1931, 1914

Resistances: 1959, 1980

Nasdaq (Cash) – Daily chart

We can see a potential further rebounding from the oversold territory, shown by the stochastic indicator.

(Click to see the enlarged chart)

Key technical elements:

  • Opposite to gold, an inverted hammer followed by a bullish candlestick is a sign of the downtrend bottom.
  • Stochastic formed a golden cross from the oversold territory, suggesting the bullish momentum is mounting.
  • The bearish momentum is reducing in MACD, but further confirmation is needed when the two moving averages form a golden cross.
  • The crucial intraday resistance is at yesterday’s high at 14,213 (the 50-day moving average), then the Fibonacci retracement of 38.20% and 50.00%, at 14,400 and 14,826 respectively, with key support at the low on the March 15 at 13,000.

Key price levels:

Supports: 13,867, 13,000

Resistances: 14,213, 14,400, 14,826


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