Nasdaq 100 Hits Document Excessive, Viral Issues Weigh on ASX 200

NASDAQ 100, NIKKEI 225, ASX 200 INDEX OUTLOOK:

• Dow Jones, S&P 500 and Nasdaq 100 indexes closed -0.44%, +0.23% and +1.25% respectively
• Cyclical-linked power, financials and industrial sectors underperformed
• Futures in Japan and Australia are decrease, setting a bitter tone for APAC shares at open

Tech Rally, Pandemic, Oil, Gold, Asia-Pacific at Open:

Wall Road shares traded blended on Monday, with know-how shares outperforming. The Nasdaq 100 index rallied 1.25% to an all-time excessive, lifted by large-cap shares comparable to NVIDIA (+5.01%), Fb (+4.18%) and ASML (+2.61%). A robust rally within the Nasdaq 100 might enhance sentiment for know-how shares throughout APAC. 7 out of 11 S&P 500 sectors closed greater, led by info know-how (+1.11%), communication companies (+0.82%) and utilities (+0.61%), whereas power (-3.33%) registered an enormous loss as oil costs declined.

The upcoming earnings season might present the inventory market one other enhance as analysts forecasted a stable interval of development. This will likely pave the way in which for Nasdaq 100 to try greater highs within the weeks to return.

Every day Efficiency of Nasdaq 100 Prime 1Zero Shares – 28-06-2021

Supply: Bloomberg, DailyFX

Crude oil costs pulled again from two-and-half 12 months highs forward of this week’s OPEC+ assembly, wherein the oil cartel is anticipated to announce a manufacturing hike plan for August. Weaker oil costs might dampen the attraction of commodity-linked currencies such because the Canadian Greenback and Norwegian Krone.

Gold costs continued to consolidated in a variety between $1,760 – $1,795, forming a “Bearish Pennant” sample. It suggests additional worth weak spot is probably going if the yellow metallic breaks under the rising trendline.

Asia-Pacific markets look set to commerce blended at present. Futures in Japan, mainland China, Australia, South Korea, Singapore and Thailand are within the purple, whereas these in Hong Kong, Taiwan and India are within the inexperienced. Viral resurgence within the UK and Australia might weigh on sentiment as international locations tightened journey bans.

The Nikkei 225 index is struggling to breach the 100-day SMA line, which stays a key resistance degree within the close to time period. Japan eliminated the state-of-emergency measures within the Tokyo and Osaka areas final week. Eased Covid-related restrictions might pave the way in which for the index to intention greater ranges, whereas a resilient Japanese foreign money might cap shares’ upside potential.

Australia’s ASX 200 index continued to consolidate as Sydney entered Covid-related lockdowns final week. Sector clever, info know-how (+0.55%) and healthcare (+0.24%) outperformed, whereas actual property (-2.28%), utilities (-2.10%) and power (-1.79%) had been among the many worst performers at open.

Nasdaq 100 IndexTechnical Evaluation

The Nasdaq 100 index breached a key resistance degree of 14,013, thus opening the door for additional upside potential. Costs might intention for greater highs within the days to return as the general pattern stays bullish-biased. The subsequent main resistance could be discovered at 14,950 – the 261.8% Fibonacci extension. The earlier resistance (14,013) has now grow to be an instantaneous help. The RSI oscillator penetrated into the 70 mark, suggesting that costs could also be quickly overbought and weak to a technical pullback.

Nasdaq 100 Index– Every day Chart

Nikkei 225 Index Technical Evaluation:

The Nikkei 225 index is trying to breach the 100-day SMA line, which is an instantaneous resistance degree. The index has additionally probably damaged the ceiling of a “Descending Channel” and thus opened the door for additional upside potential. The subsequent key resistance degree could be discovered at 30,200- the 127.2% Fibonacci extension and the place the “Triple Prime” resistance lies.

Nikkei 225 Index – Every day Chart

ASX 200 Index Technical Evaluation:

The ASX 200 index pulled again from its all-time highs this week and entered a technical correction. Costs have probably shaped a “Bull Flag” sample, which hints at additional upside potential after a interval of consolidation. Fast help ranges could be discovered on the 20-day SMA line (7,290) after which 7,200 – the 127.2% Fibonacci extension. The general bullish pattern stays intact as instructed by the upward-sloped SMA traces.

ASX 200 Index – Every day Chart

— Written by Margaret Yang, Strategist for DailyFX.com

To contact Margaret, use the Feedback part under or @margaretyjy on Twitter