NASDAQ 100 forecast, Gold forecast: Two trades to watch

Nasdaq gains after Microsoft & Alphabet beat

Nasdaq futures are soaring after Microsoft, and Alphabet earnings show signs of resilience, with the core business holding up better than expected in the first three months of the year, boosting their share price and the share price of tech rivals.

Microsoft:

Microsoft has jumped 8% in after-hours trading after beating expectations on top and bottom-line growth in Q3.

Microsoft posted:

EPS of $2.45 against $2.23 expected

Revenue of $52.86 billion against $51.02 billion forecast.

Revenue at the closely watched cloud division jumped 16%, easing fears of a sharp slowdown in spending by corporate clients.

Alphabet

Google parent Alphabet trades 4% higher in after-hours trading, as the tech giant also beat earnings and revenue forecasts, ending a string of four straight quarters where the company missed expectations.

Alphabet posted:

EPS $1.17 vs $1.07 forecast

Revenue of $69.79 billion, above the $68.9 billion expected.

The results showed that search ad spending held up better than expected but fell from a year earlier. Google is finally turning a profit in its cloud computing business.

The results have helped buoy the market mood, after recession fears pulled stocks lower on Tuesday after a series of weak earnings and after consumer confidence dropped to a 9-month low.

Looking ahead, US durable goods orders are expected to rise 0.7% MoM after falling 1% in February.

Earnings from Meta are due after the US close.

Where next for the Nasdaq?

The Nasdaq ran into resistance at 13200, the falling trendline resistance falling below the 20 sma before finding support at 12730. Buyers will need to climb back above the 20 sma to test the falling trendline resistance and last week’s high at 13200. A rise above here brings 13725, the August high into play.

On the flip side, sellers will look for a fall below 12720 would be a bearish signal, and exposes the 50 sma at 12600. Below here, the rising trendline support at 12410 comes into target.

 

Gold supported by default risk & recession worries

Gold is holding steady after two days of gains. The precious metal rose above $2000 in the previous session after a string of weaker-than-expected regional bank earnings and after consumer confidence tumbled, raising fears of a recession.

Concerns over the US debt ceiling are also underpinning the precious metal after Treasury Secretary Janet Yellen warned about the potentially severe economic consequences if the House of Representatives doesn’t raise the debt ceiling.

Today, following upbeat tech earnings the market mood has improved, limiting the upside for the precious metal, even as the USD falls.

Attention will now turn to US durable goods orders, which will provide further clues over the health of the US economy, ahead of GDP data and inflation figures later in the week.

Where next for Gold prices?

Gold trades within an ascending channel but has been caught between 1945 – 2050 range since late March. After running into resistance at 2050, the [price has eased back to the 20 sma where it is struggling for direction.

Buyers could look for a rise over 2050 to create a higher high and rise towards the 2075 all-time high.

Sellers will be looking for a break below 1970, last week’s low to open the door to 1945. A break below here exposes the 50 sma at 1925.