US Indices Start the Week on a Strong Footing as Oil Drops More Than 6%

Monday saw a sharp rebound in Wall Street, with the Dow Jones rising 2.2%, the S&P 500 2.4%, and the Nasdaq 2.7%. Nvidia was a notable exception, falling 4% amid scrutiny surrounding CEO Jensen Huang. 

Lower oil prices also supported sentiment, with WTI falling more than 5% and Brent more than 6%. The main focus now is the October CPI, expected to show headline inflation rising 0.3% and core CPI 0.2% on a monthly basis. 

In early trading today, U.S. stock futures are mostly higher, with S&P 500 futures up 0.2% and Dow futures 0.4%, while Nasdaq futures were little changed.

In Asia, China’s trade data came in stronger than expected in October, with exports rising 35.2% year-on-year, above the 33.5% forecast, while imports surged 41.6%, significantly exceeding expectations and accelerating from September.

Asian markets also traded broadly higher, led by South Korea’s Kospi, which surged 4.2%, while Japan’s Nikkei 225 gained 2.9%.

Gold had another positive session yesterday, gaining more than 1.7% to $4,140 an ounce. This is despite the 165K increase in October payrolls and a decline in unemployment to 4.1% which strengthened the case for higher rates.  However, lower oil prices and a broader risk-off environment in equities, particularly following the AI selloff, provided support for the precious metal by easing inflation concerns and pushing bond yields lower. Investors will also closely monitor developments around the U.S.-Iran peace talks for the next major catalyst.

Gold Technical Analysis

Gold is showing a strong short-term structure on the hourly chart although it has started to consolidate after its latest rally. The precious metal pushed toward $4,148 today, establishing a series of higher lows on the 1-hour chart. Price is currently around $4,121 and remains above the 20-hour moving average. 

The key resistance remains $4,148–$4,150, followed by the previous high around $4,167–$4,170. A break above $4,150 would restore upside momentum and potentially reach the $4,170 area. On the downside, $4,108–$4,110 is the first support, followed by $4,088 and the stronger $4,050–$4,030 zone.

The short-term bias is neutral to mildly bullish, provided gold remains above $4,088–$4,100. A break below this area would weaken the recent recovery structure.

Gold 1H Chart

Source: STARTRADER app | Gold shows bullish momentum on a weaker dollar and cooling energy prices

Nasdaq Technical Analysis

Nasdaq 100 is showing a clear short-term bullish recovery on the 1-hour chart after the sharp sell-off toward 26,274. The latest price action show consolidation just below 28,000, with momentum beginning to flatten after the strong recovery.

Price remains above the 20-hour average, although it is currently hovering around the shorter averages, suggesting that the immediate upside momentum is losing some strength.

The main resistance is around 28,000–28,075, followed by the previous swing area near 28,475. A sustained break above 28,075 would strengthen the recovery and could open the way toward 28,400–28,500. On the downside, 27,750–27,800 is the first important support zone, followed by 27,400 and then the more significant 26,750–26,270 region.

The overall short-term bias is mildly bullish, but the market needs to clear 28,000 convincingly to confirm another leg higher. Failure to do so could result in a pullback toward the moving averages.

Nasdaq 1H Chart

Source: STARTRADER app | Nasdaq shows a strong rebound following last week’s sell-off

Brent Technical Analysis

Brent remains under significant bearish pressure on the 1-hour chart. Price has continued to make lower highs and lower lows, eventually breaking below the $95–$96 area and reaching a fresh intraday low around $93.33.

The latest candles show only a very modest stabilization, with price still trading below all three moving averages. The 5-hour MA, the 10-hour MA, and the 20-hour MA, creating a clear bearish alignment.

The immediate resistance is around $94.00–$94.60, followed by $95.80–$96.20. A recovery above $96.20 would be necessary to weaken the bearish structure. On the downside, $93.30 is the immediate support and the latest low. A sustained break below this level would expose the $92.20 area. The short-term bias remains bearish, with rallies likely to face selling pressure unless Brent can reclaim the $95–$96 zone.

Brent 1H Chart

Source: STARTRADER app | Oil prices continue to slides as markets await results from US-Iran peace negotiations

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