Refer to charts for comments on expected price action. Charts Marked with anticipated entry setups in yellow.
Talks between the Ukraine and Russia pushed the USD lower along with oil and gold before the commodities staged a fight back off spike lows. Shares again ran higher with the DAX leading the charge in Europe. End of month/quarter window dressing could see prices add to the gains today and tomorrow.
The SPI200/ASX200 both did a lot of work in the overnight session. Price ramped higher in European trade as the DAX rocketed higher, then fell away before seeing another ramp higher into the US close to end near highs. Expecting to see an enthusiastic open to the ASX and price flush higher. Prices are stretched so will make it hard to have conviction in longs. The DOW chopped around between 35055 and 35325 and ended up near highs. Expecting anther run up tonight in the US session although expect to see some flushing out of buyers today and into Europe as prices are extended after the strong run higher. Clearing of 35325 will see the 35700 area targeted. Hang Seng had a big run up after the underlying index ad closed so expect the index to gap up on open around 280 points. For a long, will need to see some late buyers flushed on a spike down and then a higher low hold. For shorts, would like to see the opposite…longs suckered in on a spike and then a lower high. The Nikkei held up off 28345 after a strong move up in European trade. The 28525 level is key for m as we may see the zone hold for a move lower and squeeze on buyers or be support (around the zone) for a move into highs.
Cryptos did not show the same love as share markets and failed to kick higher. Bitcoin went sideways between 48170 and 47100 and may want to squeeze out some buyers prior to another move up so will be watching for a lower high and flush down. Ethereum is holding within a weak channel but looking heavy. If the channel holds then looking for another grind up…if not then price may squeeze out some buyers for a test into 3254.
Spot Gold spiked below 1916 into recent lows around 1894 before bouncing straight back above the 1916 level…holding a double bottom which may bring in the bulls. Will be watching to see if the buying continues and can hold price off the lows and give a higher low for a long entry setup. If price starts to get weighty again then will be watching for a lower high sell entry to clear out some buyers.
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Hang Seng Index