Refer to charts for comments on expected price action. Charts Marked with anticipated entry setups in yellow.
US markets pushed higher as oil moved lower to ease the inflationary concern pressure. Global sanction pressures are weighing on Russia giving traders less concerns for an escalation of the Ukrainian war.
The SPI200/ASX200 both were well contained into the start of the European session before again ramping higher in the US session. It seems that trading day can be split into two now….the US session rally and other. Prices on the ASX and SPI continue to hold higher lows with the momentum up so expect the ASX to open stronger and initially be bid. I will need to see a good flush and higher low hold before getting long otherwise it may be a scalpy day. The DOW made back the losses from the previous session in what continues to be a mixed market. Price is back up into resistance around 34780 so looking for either a flush through then failure and lower high or for consolidation around the zone and then another ramp tonight. Expect the moves to come in the US session so may see some earlier chop. Hang Seng initially rallied and then failed into 21705 to find some support. Price held up off support into the close and a lower high at 21910. Watching for either a flush lower into support and then a higher low to work a long or a flush higher and then potentially a rally off the level as traders play catchup with the US rally. The Nikkei had a good Asian market session then went sideways in European trade before ramping up into the Close of the US. Prices are extended but the trend is up which. For any long, I will need to see a good flush lower and then a higher low to hold potentially off 28230. For a short, a clear lower high needs to build…as I am conscious of the momentum up.
Cryptos followed the strength up in the US markets. Bitcoin broke up through 43000 in teh European session and then ramped up into the next resistance level at 44150. We may see a fade off this level but it will be against a bullish market so may only be good for a scalp. Ethereum was also up and reacted lower off 3131 into the US close. Price may need to flush some buyers before a new leg higher. Watching 3080 to be tested and hold for a rally.
Spot Gold extended up into 1966 before fading lower into the close. I feel that 1966 may be a key level in the short term as the USD and share market rally pressures gold lower. Will be watching for either a lower high and bigger move down or a higher low to hold above 1950 and a rally higher.
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Hang Seng Index