Spot Gold
- Gold is currently trading within a wedge pattern (white lines), where volatility typically compresses until prices break in either direction
- Should prices break above the wedge, initial key resistance may sit near the 200-day moving average (yellow), around US$4,500
- A break below the lower range could see prices move quickly towards the next major support level at around US$3,500 (green line)
Daily chart
Source: Bloomberg. Past performance is not an indicator of future performance. You cannot invest directly in an index. View chart in new tab.
Fund implementation ideas
MSCI Emerging Markets Index
- The MSCI Emerging Markets Index continues to trade within an upward sloping trend channel (white)
- Prices have been rebounding between the upper and the middle of the channel (dashed white), while the 200-day moving average (yellow) continues to slope higher, which is bullish
- In strong trending markets, one possible entry point is when prices tag the middle of the channel. Alternatively, a lower-risk entry may be to wait for prices to break below the middle of the channel and move towards the lower range, which currently coincides with the 200-day moving average
Daily chart
Source: Bloomberg. Past performance is not an indicator of future performance. View chart in new tab.
Fund implementation ideas
The US Dollar Index
- The US Dollar Index has broken up into the next trading channel (green)
- Prices had previously moved sideways through two lower trading channels (purple and red), before breaking into the current higher range
- Should prices remain above the lower end of the green trading channel, and the 200-day moving average (yellow) begins to slope higher, a break above the upper end of the green range would help confirm a new upward sloping trend
Daily chart
Source: Bloomberg. Past performance is not an indicator of future performance. You cannot invest directly in an index. View chart in new tab.
Fund implementation ideas
About Betashares Technical Watch Series
In this regular monthly Technical Watch series, I provide a snapshot of what I am currently seeing within the charts.
I am aiming to make this series as helpful as possible, so I strongly encourage readers to request a particular analysis from me. To this end, I will try to include at least one ‘reader’s choice’ chart or a chart of particular interest.
When it comes to technical analysis and charting, one should always try to put emotion and personal opinions about the markets aside in order to focus on what the charts are showing. Of course, these notes provide general information only and readers should form their own views about the outlook for markets.
This information has been prepared by Betashares Capital Ltd (ACN 139 566 868 AFS Licence 341181) (“Betashares”). Betashares Technical Watch is a series of regular monthly technical notes on selected market classes and indices. It is based upon research and analysis conducted by Thong Nguyen, who is a senior portfolio manager within the Betashares portfolio management team.
This information is for the use of Australian licensed financial intermediaries only and must not be passed on to “retail clients” as defined in the Corporations Act. It does not take into account any person’s particular circumstances, and is not a recommendation to buy, sell or hold financial products or securities or to adopt any particular investment strategy. Investors should make their own assessment of the suitability of this information, read the fund PDS and obtain professional advice. The PDSs for Betashares funds are available at www.betashares.com.au or by calling 1300 487 577.
Technical analysis is complex and subject to change on very short notice. Any opinion or view expressed should not be construed as an assurance or guarantee of any particular outcome. Investors must not solely rely on this information when making an investment decision.
An investment in any Betashares fund is subject to investment risk and the value of units may go down as well as up. Neither Betashares nor Betashares Holdings Pty Ltd guarantees the performance of any fund or the repayment of capital or any particular rate of return. Any past performance shown is not an indication of future performance.
Future results are impossible to predict. This information may include estimates and projections (“forward looking statements”) which are, by their very nature, subject to various risks and uncertainties. Actual events or results may differ materially, positively or negatively, from those reflected or contemplated in such statements. Forward looking statements are based on certain assumptions which may not be correct. Investors must not place undue reliance on such statements. Betashares does not undertake any obligation to update forward looking statements to reflect events or circumstances after the date such statements are made or to reflect the occurrence of unanticipated events.