Article by Chris Beauchamp, Senior Market Analyst at IG
Dow Jones, Nasdaq 100 and Hang Seng – analysis, prices and charts
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Dow Jones trying to build on Friday’s gains
After rising on Friday, the index faced resistance around 33,800. If buyers can step in above the 50-day SMA, a more bullish view may prevail; In fact this may still be the case even if the price drops back towards 33200.
Further upside above 33800 opens the way to 34200 and peaks from early May, while after that January and February highs are around 34345.
Sellers will want to see a drop below 33,200 to set up another possible test of the 200-day simple moving average and May lows around 32,600.
Dow jones daily price chart – june 6, 2023
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Nasdaq 100 It hits a new one-year high
While other indices stumbled on Monday, this one hit a one-year high, buoyed by euphoria around AI stocks.
The steady gains from late April have remained in place, with about 1,800 points added to the index in that time. The indicator shows no sign of reversing or even consolidating at the moment. For this to happen we would need to see a drop back below 14,200 and then below 14,000.
March 2022 highs around 15,230 continue to be the next target if the index continues to make progress.
Daily price chart for the NASDAQ 100 – June 6, 2023
Hang Seng Struggling to hold on to gains
The index rebounded from a six-month low last week, and may have established a new trend line from its October 2022 lows.
However, more upside has been observed since last week’s rally, leaving the index below the 200-day simple moving average. It managed to cross 19,000 major support areas in December 2022 and March 2023.
A reversal below 18,700 could signal another potential test of trendline support from October 2022 lows, or a drop towards last week’s lows of 18,000.