ASX 200 Eyes 6100 as Mining Stocks Surge, Nikkei 225 Climbing Higher

STRAITS TIMES INDEX, NIKKEI 225, ASX 200 OUTLOOK:

  • Strait Times consolidates at 2500 levels, as it awaits the catalysts to breakout
  • Nikkei 225 index surge higher in the early years, this might result in the pacific stocks rising higher
  • ASX 200 index might surge after the strong US session faces the key resistance at the 6100 levels ahead.

ASX 200 FUNDAMENTAL ANALYSIS

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ASX 200 index, the Australian stock market index might mildly open much higher on Tuesday based on the futures market. With the US technology stocks resulting in a decent rebound in the USA, local equity indices in the last 24 hours, this might send the price of the index futures across the Asia-Pacific zone higher.

With the ASX 200 index hovering around the resistance territory between the 6000 and 6100 territories, with coronavirus resurgence risks doing its best to contain the risk appetite. With a very strong rally in the prices of gold, this week so far propelling the Australian mining industry that gained about 1.7% on Monday. The gold mining stocks rose 4.27% on average.

Industry wise- communication services (+1.14%), consumer staples (+1.14%) and materials (+1.57) were outperforming, while the energy (-0.37%), healthcare (-0.57%) and utilities (-0.71) were lagging.

ASX-200

Source: Bloomberg

Technically speaking, the ASX 200 faces a powerful resistance at the 6100 Fibonacci (61.8% retracement). This reaffirmed the key resistance. With the ASX 200 index recovering from the March low, it has created an ascending triangle on the chart. The upper side of this triangle largely coincides with the support at 61.8% Fibonacci retracement. On the other hand, the 100-Day, 50-Day, and 20-Day Simple Moving Average (SMA) shows the main trend remains bullish.

ASX 200 Index Chart

ASX-200-Attempts-6100

Nikkei 225 Index Technical Outlook

The Nikkei 225 index might mildly open higher today, after the powerful USA trading session led by the tech industry. However, the uptrend momentum is most likely contained by the increasing concerns about the coronavirus pandemic and a powerful Japanese yen. With the USD Index falls to a 2 year low, the Japanese yen has become stronger to 105.3, which is the highest that has been seen from March 020. Technically, a strong currency is not favorable to the nation’s tourism and export sectors, Canadian Dollar (CAD) Heads Up Post Interest Rate Release Against the Japanese Yen.

Technically speaking, the Nikkei index is trying to break out the key resistance at 22,800 levels. This is the upside bound of the rectangle highlighted on the following chart. To try higher highs, it must strongly break over the previous high that had been seen back in June trading at 23,300. The immediate support level may be found in the 22,400, for the 50-Day Simple Moving Average.

Nikkei 225 Index Chart

nikkei 225

STRAITS TIMES INDEX FUNDAMENTAL OUTLOOK

The Singapore Straits Times Index seems to consolidate between 2500 and 2600 levels since week 30. It is highly likely that it is forming that ‘Double Bottom’ pattern in the daily chart. The 2nd quarter earnings then results seem to have been mixed up as it is right now. Trading is currently waiting for results from the huge tech companies.

Straits Times Index Chart

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