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FTSE 100 hits yet another record high while DAX 40 and S&P 500 resume their ascents Outlook on FTSE 100, DAX 40 and S&P 500 amid strong US earnings. Source: Getty Images Written by: Axel Rudolph FSTA | Senior Financial Analyst, London Publication date: Friday 26 April 2024 13:42 FTSE 100 hits yet another record high Foreign investor buying of the undervalued UK blue chip index led to further gains in the FTSE 100 which is trading at yet another record high. The 8,200 zone is now in focus, above which lies the 8,300 mark which is where the 161.8% Fibonacci extension of the March-to-June 2020 advance, projected higher from the October 2020 low, can be found. Support sits between the early-to-mid-April highs and Wednesday’s low at 8,046 to 8,003. Source: ProRealTime DAX 40 recovers from Thursday’s low The DAX 40 was dragged lower by its US counterparts following the release of much weaker-than-expected preliminary Q1 GDP data but overnight recovered on better-than-expected US earnings. A rise above Thursday’s 18,080 high would engage this week’s high at 18,238 ahead of the 18,500 region. Yesterday’s low was made along the 55-day simple moving average (SMA) at 17,815. Source: ProRealTime S&P 500 resumes its ascent The S&P 500 resumes its ascent, having on Thursday slipped to 4,990 on disappointing US Q1 preliminary GDP data, before recovering on strong earnings by the likes of Alphabet, Microsoft and Snap. The index is heading towards the 55-day simple moving average (SMA) 5,114 above which the April downtrend line can be seen at 5,146. Slips may find support can be seen around Monday’s 5,039 high. Source: ProRealTime -
Gold price, Brent crude price and natural gas price rise in early trading Commodity prices have gained in early trading, recovering from the lows seen earlier in the week. Source: Getty Images Written by: Chris Beauchamp | Chief Market Analyst, London Publication date: Friday 26 April 2024 13:25 Gold up as price recovers from late April weakness The price has pushed higher in early trading, reinforcing the view that a higher low has been formed. Additional gains would head towards the $2400 highs from the middle of April, and then on to $2425. For the moment, $2300 appears to have been established as a higher low, so a close back below this level would be needed to open the way to the 50-day simple moving average (SMA). Source: ProRealTime WTI higher for a second day After bouncing off the 50-day SMA earlier in the week the price has continued to push higher, with further gains in early trading this morning. A higher low appears to have formed, and now the price is testing trendline resistance from the early April high. A breakout above this would target $85.72, last Friday’s high, and then on to $87, the highs from the beginning of April. A reversal back below $82 might result in a test of the 50-day SMA and last week’s low. Source: ProRealTime Natural Gas gains continue Despite a sudden drop on Wednesday the price has maintained the move higher from the beginning of April. Trendline support from the end of March continues to underpin the price action, and continued gains will target the 100-day SMA and the highs from the beginning of the week at 2130. Sellers will want to see a close below Thursday’s low and below trendline support to mark a more bearish development. Source: ProRealTime
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Gold drops amid eased tensions, eyeing potential boosts from a wavering dollar around the $2320 level. Silver faces a crucial resistance, outlining future directions for metals as safe-haven demand wanes. Source: Getty Forex Shares Commodities Gold Market trend Risk Written by: Richard Snow | Analyst, DailyFX, Johannesburg Publication date: Friday 26 April 2024 06:45 Gold bulls looks for inspiration in the dollar after tensions subside Implied gold volatility (GVZ) has experienced a notable drop now that the risk of a broader conflict in the Middle East has subsided massively. As a natural result, gold prices have pulled back, but remain at elevated levels. Gold bulls may be looking to a slightly weaker dollar in anticipation of a bullish continuation for the metal, but in recent weeks, gold has appeared detached from its usual inverse relationship with the greenback as the two have risen together. Gold 30-day implied volatility Source: TradingView Gold attempts to lift off support at $2320 Gold, after spending a significant amount of time in overbought territory, has cooled and declined towards the $2320 level, where it has oscillated. With a reduced safe haven appeal, the gold market appears to be in search of the next bullish, or even bearish, catalyst. US data has revealed early signs of vulnerability, which could affect US yields and the dollar if major data points follow suit. But for now, the dollar remains strong, with rate cut bets being pushed further and further out. At this level, $2320 may offer a launchpad for gold if price action unfolds in a similar way to what developed back in March after printing a new all-time high; and consolidating along $2146.80 (prior all-time high) before the next leg higher. However, should bears take over from here, $2222 appears as the nearest level of support before the 50-day simple moving average (SMA) emerges around $2200 flat. Today’s GDP miss and the disappointing flash PMIs have opened the door to weaker US data. Something to keep an eye on in the future. Gold daily chart Source: TradingView Silver (XAG/USD) tests Fibonacci level currently acting as resistance Silver, similarly, to gold, has also dropped sharply as risk sentiment recovered. The rise in risk tolerance provided an opportunity for Indices and high-beta currencies like the Aussie dollar and the pound to claw back losses. Speaking of risky assets, Meta’s forward guidance sent the S&P 500 lower but the magnitude is of the drop is unlikely to prompt a panicked switch to safer assets like gold and silver. Silver hovers around the 78.6% Fibonacci retracement of the 2021 to 2022 decline at $27.40, with the level appearing to provide resistance to a possible bullish continuation. A move to the downside from here would highlight the 61.8% Fib level at $25.30 (coinciding with the 50 day SMA). Silver daily chart Source: TradingView This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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