US100
Let’s start today’s analysis with the US tech index - Nasdaq (US100). Looking at the H4 interval, one can see that the index reached a fresh all time high this week. However, the upward movement slowed down and the local downward correction started. The area at 14,055 pts marked with the previous high should act as a key support now. Should buyers manage to keep the price above, the continuation of an upward move looks the base case scenario. On the other hand, breaking below the aforementioned zone, may trigger a bigger downward move. In such a scenario the nearest support to watch lies at 13,865 pts, where the lower limit of local 1:1 structure (red rectangle) is located.
US100 H4 interval. Source: xStation5
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Next, let's take a look at the German stock market. Looking at the technical situation on DAX (DE30), we can see that the recent upward trend has clearly slowed down recently. However, the index still sits above the key support at 15,515 pts, which was retested last week. According to the classic technical analysis, the main trend remains upward, and in case of a break above the 127.2% FIbonacci retracement, the upward move may accelerate. In such a scenario, traders should look towards the next Fibonacci level - 161.8% at 15,965 pts. On the other hand, a break below the aforementioned 15,515 pts support could see sentiment change to bearish. As a result, the lower limit of 1:1 structure may become the first target for market bears.
DE30 D1 interval. Source: xStation5
GOLD
Last but not least, let's take a look at the gold market. Looking at the H4 interval, one can see that the precious metal has launched a downward recently. However, buyers manage to halt declines at the key short-term support, which is marked with the lower limit of local downward channel and the market geometry (ABC correction). If market bulls manage to keep control, another upward impulse looks possible. On the other hand, should the price break below the $1,845 mark, a bigger downward move may happen. The next key support to watch lies at $1,798 and is marked with the previous price reactions, as well as 50% Fibonacci retracement of the recent upward swing started at the end of March.
GOLD H4 interval. Source: xStation5
