The trade: Nasdaq range-bound as ASX 200 holds uptrend
IG's Tony Sycamore examines trends in the Nasdaq and ASX 200 as Meta gains and Tesla losses impact market dynamics.
Nasdaq 100's sideways trend signals mixed performances
The Nasdaq 100 has been experiencing a prolonged period of sideways movement, trading between 21,000 and 22,000. This range-bound action reflects the mixed performance of major stocks like Meta and Tesla. While Meta has shown impressive gains, Tesla's share price has fallen significantly, now trading 33% below its December high.
Traders are closely watching for a break above 22,000, which could signal a bullish run towards 23,500. However, caution is advised as a retest of the January low around 20,500 is still possible, especially with the 200-day moving average (MA) and uptrend support in place.
Traders eye ASX 200 breakout
The ASX 200 is also in a holding pattern, with recent highs suggesting an uptrend remains intact. The index is hovering between 8350 and 8670, and traders are optimistic about a potential move towards the top of the trend channel.
Aussie dollar rebounds amid stable commodities
Meanwhile, the Australian dollar (AUD) has seen a strong rebound, moving from $0.60 to nearly $0.63. This recovery is attributed to the pricing in of negative news around tariffs and stable commodity prices.
However, the Aussie faces resistance between $0.6330 and $0.6370, and a break above this range is needed to confirm a medium-term low.
Commodities and cryptocurrency insights
Crude oil has been trading within a range, with recent concerns over Russian and Iranian supplies influencing prices. The support level around $70 has held, and traders are eyeing a potential move towards $78.50 to $80.50, pending a break of the 200-day MA.
Bitcoin's uncertain path forward
In the cryptocurrency market, bitcoin's price action remains uncertain. Although it has support around 95,000, the lack of new tailwinds and ongoing macroeconomic headwinds suggest caution.
A break below this support could indicate a medium-term high, potentially leading to a decline towards the 200-day MA near 79,000.
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.
Discover how to trade the markets
Learn how indices work – and discover the wide range of markets you can spread bet on – with IG Academy's free ’introducing the financial markets’ course.
Put learning into action
Try out what you’ve learned in this index strategy article risk-free in your demo account.
Ready to trade indices?
Put the lessons in this article to use in a live account – upgrading is quick and easy.
- Get fixed spreads from 1 point on the FTSE 100
- Protect your capital with risk management tools
- Trade more 24-hour markets than any other provider
Inspired to trade?
Put your new knowledge into practice. Log in to your account now.
Live prices on most popular markets
- Forex
- Shares
- Indices
