Gold remains bound by a major long-term trend-line, but still has a supportive trend; keeps outlook in limbo for precious metals. The FTSE is up against significant price resistance, DAX rally looking corrective. Nasdaq 100 back at record high, looking for a dip soon.
Technical Highlights:
- Gold under pressure as long as it remains beneath 2013 trend-line
- FTSE struggling around 7300-line, technical pattern coming into view
- Nasdaq 100 back near high, looking for a pullback in the short-run
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Gold under pressure as long as it remains beneath 2013 trend-line
Gold continues to struggle mightily around the 2013 trend-line, a threshold that as long as it stays below keeps the outlook neutral to bearish. A weekly close above the trend-line is required for a confirmed breakout given the long-term duration of the line.
Gold has support by way of a trend-line dating back to December, which it is currently trading beneath at this time. A daily close below 1321 brings the 1306/00-area into play as a targeted objective.
Silver has an even poorer posture than gold, looking ready to trade down below the 16.20-line to under 16 where a trend-line runs up from July. To turn the outlook constructive, we’re looking to gold and a breakout above the 2013 trend-line.
Gold Daily Chart
FTSE struggling around 7300-line, technical pattern coming into view
The FTSE continues its struggles around 7300, and as long as the index stays below there the outlook remains neutral to bearish. Coming into view on the hourly chart is an ascending wedge, which may help the index push on through 7300, but the wedge could also act as a continuation pattern off the January high. We’ll wait for a confirmed breakout in either direction before running with a bias…
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FTSE Daily Chart
FTSE Hourly Chart (Wedge)
Nasdaq 100 back near high, looking for a pullback in the short-run
We looked at three of the major U.S. equity indices – S&P 500, Dow Jones & Nasdaq 100 – but focused on the latte due to its technical posturing. With the S&P and Dow hanging out below highs there aren’t any great levels to work with. Risk/reward from either side of the tape isn’t particularly favorable.
The Nasdaq 100, however, has the old highs at 7023 just ahead and with the run having been fierce; a pullback at the least looks like a probable scenario. From there, depending on how a decline would play out (if one develops); we can make a better determination if it is of the healthy corrective variety or something that could lead to a sharp decline.
Nasdaq 100 Daily Chart
And more…
We also looked at the DAX, CAC, S&P 500, Dow Jones, Nikkei, and crude oil.
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---Written by Paul Robinson, Market Analyst
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