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 (AEDT) for underlying indexes are SPI200 at 10am, N225 at 11am, HSI at 12:30am, DAX and UK100 at 7pm and DOW and USTech100 at 1:30am .
OVERNIGHT MARKET SNAPSHOT FOR MONDAY 13/02/23
US Indexes were mixed on Friday as they fought back from a weaker open thanks to a selloff in the European session. The ASX200, Hang Seng and Nikkei were all weak today from the open to start the new week but they did fight back surprisingly well. The Hang Seng bounced 2% off the opening lows in a show of defiance from bulls while the Nikkei also fought back from an early selloff currently grinding its way back up into the close. The ASX200 was weak out of the gate but held support around 7405 well to close up off the level and limit any damage. The USD edged higher while Oil and Gold moved down through Asian trade. All in all, it remains a hard market to navigate so risk management must be a priority.
(All times AEDT) CHF CPI 6:30pm, EUR Eurogroup Meetings ALL DAY and USD FOMC Member BOWMAN Speaks at 12am.
The ASX200 flushed into 7405 within the first 20 minutes of trade and then spent the rest of the session relatively range bound. I expect the price may test up into 7437 if Europe can also find support. (Refer to the Trade The Structure members area for weekly updated ASX200 charts) The Hang Seng gapped down on the open but that was basically the low of the session as bulls pushed price back up above Fridays close. I expect that any weakness in the European session may see sellers come back into the HSI to press price below 21075 and test into the days lows. If price can hold above 21075, then I expect to see a grind higher. The Nikkei initially sold off hard from the open but put in a session low and found buyers from the Hang Seng open. Price looks set to test up into 27490 as we see general bargain hunting into the share market. The DOW moved lower in Asian trade and tested back into 33744 which was a key level from Friday. I will be looking for price action to test highs around 33890. If price can not push above 33810, then we may see a move down below 33744…but from the Buoyant Asian session, I expect some bargain hunting in European trade. Key levels to watch are 33744, 33810 and 33890. The US Tech 100 also traded lower around Fridays lows at 12235. The bias remains down although I will be looking for 12235 to hold and price to work up into 12315 or higher. If price breaks below 12235 and holds below, then we could see an extension down towards 12100. Key levels to watch are 12235 and 12315. The DAX also moved down from the Fridays close, and held lows again around 15255. If price action continues to find strength, I expect a test into 15352 and potentially higher. Key levels to watch are 15255, 15352 and 15385. The UK100 moved down into 7872 in the back of Asian session weakness, but then has since worked higher and is set to test into Fridays close. I expect to see medium term weakness but expect the open will find some buyers. Key levels to watch are 7888, 7910 and 7872.
USD Index moved up above 103.580 and held above the level all session. If price can hold above the level, then expecting to see another grind higher and further weakness into the major FX pairs. Spot Gold spent all session moving lower before a late spike to break above 1865. The strength may be short lived if the USD find buyers so expecting to see price move back below 1865 before heading higher again. Crude Oil sold lower from the session open and is still heading down into 78.62 potential support. If that level can not hold then expecting to see an unwind of longs into 77.14.
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Hang Seng Index
US Tech 100 Index
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