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 higher but the Hang Seng stole the show. Beijing announced a fresh round of economic stimulus late in the session that sent markets rocketing higher although the European markets could not hold the gains once the excitement dissipated and they realised that it did not affect them much. The Hang Seng index ended up 3.63% as Housing market and Bank debt issues were brushed aside for now. Gold broke out above resistance and pushed higher while the USD moved lower. Oil is holding highs which will continue to pressure global markets and the inflation narrative. Data to watch – US Prelim GDP and Unemployment Claims at 10:30pm and Day 1 Jackson Hole Symposium.
Major markets, apart from the Hang Seng, rejected the rally so the US open will be interesting as many sellers have been squeezed back out of the action already. Waiting for the dust to settle on the open prior to entries.
Prices as at 10:30pm AEST
ASX200 Index up 50 pts to 7048.1
Nikkei Index up 165.54 pts to 28478.94
Hang Seng Index up 699.64 pts to 19968.38
Dow Jones Futures up 60 pts to 33018
FTSE100 Index up 11.01 pts to 7482.51
DAX40 Index up 45.28 pts to 13265.34
GOLD futures (Spot) up $7.65 to $1759.11 an ounce
OIL futures (Sep) up $0.16 to $95.05 a barrel
AUDUSD trading at 0.6965
EURUSD trading at 0.9968
GBPUSD trading at 1.1816
USDJPY trading at 136.7100
USD Index (Sep) up 0.086 to 108.518
The DOW flushed higher on the back of the Beijing stimulus news but it was just an opportunity to squeeze out some sellers. Price has since moved back down below 33047 so watching for continuation lower. The US Tech 100 did much the same as the DOW with a pump and dump back down around where it started. Price is hovering on 12985 support so watching the level to see if it can hold or if price continues back down into lows. The DAX also ramped higher to squeeze out some sellers before falling back over below where it started. Expecting to see further weakness but want to see price rejected pops into 13301 first and hold a lower high. The UK100 had a big move up above 7497 and just as quickly fell back below the level. Will be watching to see if price holds below the level for a push down into the lows.
Cryptos are still correcting higher off support levels with Bitcoin holding a higher low at 21350 but still struggling to push clearly into new highs above 21675. Ethereum has pushed up above 1688 but stalled below 1725 with momentum rolling lower. Watching both for a potential squeeze lower but for now they are being supported by USD weakness.
Spot Gold got a kick higher from a weak USD and pushed up above the 1754 resistance level. Price has given back some of the gains but bulls will be watching for a higher low to hold up off 1754.
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US Tech 100 Index
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