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
