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.