The Nasdaq 100 Index
– After a brief correction, the Nasdaq 100 has rallied strongly off the lower range of its upward sloping channel (white line), with prices now moving towards the upper end of the channel.
– The trend remains strongly positive. Prices may temporarily push above the upper trend line, but over-extended in the short-term.
– Should prices pull back, the path of least resistance remains to look for long opportunities with the trend near key support levels.
Daily chart
Source: Bloomberg. View enlarged chart
Fund implementation ideas
Bitcoin
– After briefly touching US$60,000 earlier in the year, Bitcoin recovered to above US$80,000. However, the 200-day moving average (yellow) has acted as major resistance and continues to slope lower.
– Prices are now trading at key support (Red line). A break below this would increase the risk of a move back towards the prior lows around US$60,000, where key support remains (green area)
– Until prices can reclaim the 200-day moving average, the price action remains vulnerable in the short-term
Daily chart
Source: Bloomberg. View enlarged chart
Fund implementation ideas
| Bullish |
|---|
| QBTC – Bitcoin ETF |
The S&P/ASX All Technology Index
– The S&P/ASX All Technology Index is showing signs of strength. Prices have gapped above the downward sloping trend line (red), then consolidated in a bullish pattern within the white channel, forming a bull flag.
– Prices have now broken out of the channel, which is a bullish sign in the short-term and may indicate the longer-term downtrend has completed its course.Watch for resistance at the 200day moving average (yellow).
Daily chart
Source: Bloomberg. Past performance is not an indicator of future performance. You cannot invest directly in an index. View enlarged chart
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.
