Mid-Week Technical Outlook: Indices & Commodities

Global equities rose on Wednesday as weak US economic data overnight boosted hopes for a less hawkish Federal Reserve.

US job openings fell to their lowest level in more than two years while consumer confidence printed weaker than expected – fuelling bets around the Fed having less headroom to keep raising rates. This development weakened the dollar while supporting gold and US equities. Given how several more key U.S. economic indicators are scheduled this week, including the personal consumption expenditures and nonfarm payrolls – volatility could be the name of the game.

The increased volatility may present fresh opportunities across the board. However, our attention today falls on indices and commodities with the weapon of choice, none other than technical analysis.

SPX500_m bulls back in town?

The S&P 500 experienced a solid breakout above the 50-day SMA in the previous trading session with bulls slamming into the 4500-resistance level. A solid breakout above this point could encourage an incline towards 4580. Should 4500 prove to be reliable resistance, a decline back towards 4463 and 4390 could be on the cards.

NQ100_m gearing for fresh upside?

After breaking above the 15300 level, the Nasdaq 100 has the potential to push higher with the next key level of interest found at 15700. Should bulls run out of steam, prices may sink back below 15300 which could encourage a decline back towards 14965 and 14670, respectively.

UK100_m heads towards key resistance

UK100 bulls seem to be back in town after rebounding from the 7250 support level. Prices remain within a wide range with key layers of resistance at 7605 and 7710, respectively. Should bulls conquer these key levels, the UK100 may start a fresh bullish trend. If prices are unable to push beyond 7605, a decline back towards 7370 could be on the cards.

Brent approaches weekly resistance

It felt like the same old story for oil prices over the past few weeks as the supply and demand dynamics influencing the commodity clashed. Prices seem to be pushing higher thanks to a weaker dollar with the next key level of interest found at 89.00 – where the weekly 100 SMA resides.

Gold to extend rebound?

In our trade of the week, we discussed whether gold was primed for another breakout. We received our answer yesterday after the precious metal blasted through the $1920 resistance level following soft US economic data. Gold bulls are back in the building and could send prices higher amid a weaker dollar and growing hopes for a less hawkish Fed. The recent breakout above $1935 may inspire a move higher towards $1957 – where the 100-day SMA can be found. Although bulls are currently in power, this can be easily flipped by key US economic data – including Friday’s highly anticipated NFP report.

SPX500_m NQ100m uk100 Federal Reserve Rates inflation NFP Markets SMA