Charts Marked with anticipated entry setups in YELLOW and ideal setup in GREEN on market opens. There will be many possible scenarios shown so it is key to work off major levels and higher lows/lower highs once the price action unfolds.
PROCESS IS KEY….DEFINE LEVELS – MARK EXPECTED PRICE ACTION – TRADE THE SETUPS
All prices refer to the CFD pricing from the charts below off TD365.com. Opening times (AEST) are SPI/N225 at 10am, HSI at 11:15/30am, DAX and UK100 at 4/5pm and DOW and USTech100 at 10:30/11:30pm .
OVERNIGHT MARKET SNAPSHOT FOR TUESDAY 23/08/22
Asian market Indexes were lower again with the ASX200 and Nikkei taking a hit from bears while the Hang Seng fared a little better. The move down was a flow on from the US session as the Hang Seng continues its recent trend down (weighed down by Chinas housing market and bank debt issues) while the ASX and Nikkei generally saw some profit taking from the recent run up. European markets are were weaker from the open but some bargain hunting is supporting the DAX. The USD is again finding some buying support through Asian and European trade as price heads back up to daily highs and pressures dollar denominated assets and currencies lower. DOW futures have flushed into new lows at the start of European trade but have since recovered so I expect to see a weak open but will be looking for a short squeeze to kick off the US action. Data to watch – USD Flash Manufacturing and Services PMI at 11:45pm and US New Home Sales at 12am AEST.
The US may see some pressure again from Sellers on the open but I will be on guard for a short squeeze if price fails to make and hold new lows.
Prices as at 10:15pm AEST
ASX200 Index down 85.1 pts to 6961.8
Nikkei Index down 341.75 pts to 28452.68
Hang Seng Index down 153.73 pts to 19503.25
Dow Jones Futures up 22 pts to 33081
FTSE100 Index down 51.79 pts to 7482.01
DAX40 Index down 11.70 pts to 13218.87
GOLD futures (Spot) down $2.37 to $1733.88 an ounce
OIL futures (Sep) up $1.11 to $91.47 a barrel
AUDUSD trading at 0.6865
EURUSD trading at 0.9919
GBPUSD trading at 1.1752
USDJPY trading at 137.5500
USD Index (Sep) up 0.147 to 109.102
The DOW is holding up off 32975 support after a flush below the level into the European open. Price is also being held down at 33150 so these are the key levels to watch today. The US Tech 100 is similar to the DOW with bulls holding price action above 12820 while bears capping price at 12960. I would expect to see a flush lower and if it does not then hold a lower high….I will be looking for a short squeeze. The DAX is managing to fend off more sellers for now after a spike below 13185 was rejected. Watching the 13185 level to see if buyers start to again defend the level for a rally or not. The UK100 is holding lower highs into 7466 support. Price has an extension level just below at 7457 which may be targeted on a flush. For me, it is much the same game plan as the other major indexes…look for a short squeeze higher or continuation lower.
Cryptos held support and may be correcting up off the lows…bit this will depend on the sentiment at the US open. USD is moving higher which may pressure Bitcoin and Ethereum lower.
Spot Gold has been choppy but remains under pressure. The 1734 level is key tonight and at this stage it is holding. Watching for a potential lower high to hold and for gold to move into 1715 but his may be a big ask as the USD hovers below daily highs which may cap the Dollar rally and support Gold.
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US Tech 100 Index
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