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.
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.
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
Find your flow: four principles for trading in the zone
Learn about the four trading principles of preparation, psychology, strategy, and intuition, and gain key trading insights from some of the world's top investors.
Get this free report
Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
