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 WEDNESDAY 24/08/22
Asian market Indexes were mixed with the Hang Seng and Nikkei moving lower while the ASX200 ended with minor gains. The USD moved back up which pressured Gold and FX dollar denominated pairs. Oil continues to show strength which I expect will put upward pressure on inflation expectations. The European session was dominated by bulls and bargain hunters after getting off to a rocky start with both the DAX and FTSE (UK100) flushing lower on the open. The US Indexes remain bias down but are expended into support areas so could see bargain hunters, like with the start of the European session, support the open. Data to watch – USD Durable Goods at 10:30pm, US Pending Home Sales at 12am AEST and Crude Oil Inventories at 12:30am AEST.
The US may see some bargain hunting after a few solid down days. Jackson Hole expectations may keep a lid on any rally though so I am not looking for another trend day.
Prices as at 10:15pm AEST
ASX200 Index up 36.3 pts to 6998.1
Nikkei Index down 139.28 pts to 28313.40
Hang Seng Index down 234.51 pts to 19268.74
Dow Jones Futures up 17 pts to 32918
FTSE100 Index down 25.79 pts to 7462.31
DAX40 Index up 8.48 pts to 13202.71
GOLD futures (Spot) down $4.25 to $1743.67 an ounce
OIL futures (Sep) up $0.66 to $94.40 a barrel
AUDUSD trading at 0.6886
EURUSD trading at 0.9918
GBPUSD trading at 1.1760
USDJPY trading at 136.9100
USD Index (Sep) up 0.147 to 109.009
The DOW saw an early flush lower but has since found buyers to push price up into 32975. The way the European markets traded, I expect that the US may see some bargain hunters to support price but do not expect a big rally ahead of Jackson Hole. The US Tech 100 held 12820 support with price working its way higher through European trade. The trend remains down for now and is holding below 12960. I expect more of a choppy session but for lows to hold. Setups will be important off key levels. The DAX held the early weakness and flush down into 13115. Like the DOW and the Nasdaq, we may see some bargain hunters keep price up off the lows. The UK100 had a big flush lower on the European open into 7422 before bouncing straight back just as hard. Price is holding below resistance at 7466 so expecting more weakness.
Cryptos are correcting higher off support levels with Bitcoin holding up off 20885 with a higher low at 21275. Ethereum has been edging higher holding higher lows but holding below potential resistance at 1673. Both I expect may find some buyers on the US open if bargain hunters support the major Indexes.
Spot Gold has been choppy but is holding a higher low around 1744. The level is not confirmed yet so watching for a higher low for a rally up into 1754…as long as the USD finds some sellers.
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US Tech 100 Index
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