ASX 200 (XJO)
I highlighted this market in our recent Chart of the Day on the daily timeframe.
Following the lower low formed at 6,895 last week, which happened to probe below the 6,905 3 January low and touch gloves with a 1.272% Fibonacci projection at 6,897 (‘alternate’ AB=CD structure), the unit has been busy carving out an AB=CD bearish formation that will complete around the 100% projection at 7,061 should another push to the upside emerge. Nearby, I also see a 38.2% Fibonacci retracement ratio at 7,077; therefore, sellers could welcome this zone.
US and European equities showing similar AB=CD construction
Aside from the FTSE 100, the DAX, the CAC and the EuroStoxx50 recently pencilled in a rebound from daily supports at 14,602, 6,791 and 4,016, respectively. What’s also technically appealing is that all three markets are currently printing similar price action to the ASX 200: AB=CD bearish patterns (100% projections) at 15,665, 7,312 and 4,330, respectively.
The difference, of course, is that the ASX 200 is (technically) exhibiting early signs of a downtrend, while European markets are evidently trending higher across the board.
Across the pond, the S&P 500 and the DOW display similar price action on the daily timeframes.
The DOW, following its rebound from a 100% projection (AB=CD construction) at 31,721 in mid-March, is seen forming an AB=CD bearish pattern (100% projection at 33,177) in a market emphasising a downside bias (note the clear lower lows and highs since price topped in late 2022), which happens to be joined by a 61.8% Fibonacci retracement ratio at 33,234 and resistance from 33,263.
The S&P 500, on the other hand, leans more in favour of the bulls in terms of trend direction, despite recently forming a lower high/low that touched a 100% projection at 3,818 on 13 March. Following the rebound from the noted 100% projection, which is also an AB=CD bullish formation, Harmonic traders will acknowledge a potential AB=CD bearish pattern unfolding, denoted through a 100% projection at 4,144. Additionally, I see resistance present at 4,099.
This material on this website is intended for illustrative purposes and general information only. It does not constitute financial advice nor does it take into account your investment objectives, financial situation or particular needs. Commission, interest, platform fees, dividends, variation margin and other fees and charges may apply to financial products or services available from FP Markets. The information in this website has been prepared without taking into account your personal objectives, financial situation or needs. You should consider the information in light of your objectives, financial situation and needs before making any decision about whether to acquire or dispose of any financial product. Contracts for Difference (CFDs) are derivatives and can be risky; losses can exceed your initial payment and you must be able to meet all margin calls as soon as they are made. When trading CFDs you do not own or have any rights to the CFDs underlying assets.
FP Markets recommends that you seek independent advice from an appropriately qualified person before deciding to invest in or dispose of a derivative. A Product Disclosure Statement for each of the financial products is available from FP Markets can be obtained either from this website or on request from our offices and should be considered before entering into transactions with us. First Prudential Markets Pty Ltd (ABN 16 112 600 281, AFS Licence No. 286354).
Follow us on Telegram
Stay updated of all the news
EUR/USD closes in on 1.0700 amid broad USD strength
EUR/USD came under renewed bearish pressure in the American session and dropped to its lowest level since late March near 1.0700. Stronger-than-forecast PCE inflation data and hawkish comments from Fed's Mester provide a boost to the US Dollar and weigh on the pair.
GBP/USD loses bullish momentum after US data, falls below 1.2350
GBP/USD has reversed its direction and erased a large portion of its daily gains on Friday after the data from the US showed that the annual core PCE inflation edged higher to 4.7% in April. Although the pair clings to small daily gains below 1.2350, it remains on track to end the third straight week in negative territory.
Gold erases daily gains, holds above $1,940
Gold price turned south and declined to the $1,940 area in the American session on Friday. The benchmark 10-year US Treasury bond yield holds stead above 3.8% after stronger-than-expected core PCE inflation data from the US, not allowing XAU/USD to gain traction.
Ethereum price to outpace Bitcoin price as ETH jumps over key hurdle where BTC fumbles
ETH is working on its recovery after it dipped to a two-week low on Thursday. While Bitcoin price has failed to make a similar move and head back above $26,500, Ethereum is outpacing Bitcoin and has been able to push above $1,800.
Ford Stock: New agreement will give customers access to 12,000 Tesla chargers
Ford (F) stock has advanced about 2.5% early Friday following CEO Chris Farley’s announcement that Ford owners will be able to charge their EVs at Tesla Superchargers beginning in early 2024.