World Markets on a roll - can this sustain?- Financial Market analysis for the week ended April 25, 2025

They say the market has a mind of its own - it could not be truer in the present context in the middle of all the uncertainty and chaos, fuelled by eroding credibility of US policy. Trump's trade wars and erratic policymaking have led to a weakening dollar, broken supply chains and a real fear of inflation derailing the US economy.

The above should be a perfect recipe for the markets to shudder and sink, you would think? Not so. Consider this.

After the initial shock and carnage leading to a 12-15% fall across the globe following the Apr 2 announcement on reciprocal tariffs -

👉 Nasdaq and S&P have almost completely recovered all the losses since Apr 3 and both have given a breakout buy from a 1-2-3 on the daily chart last Friday.

Daily chart of Nasdaq illustrating a 1-2-3 breakout

👉 DJIA is yet to cover some ground in recovering losses since April 3, but looks likely to give a similar breakout as Nasdaq and S&P. The structure looks very bullish.

Daily chart of DJIA illustrating a 1-2-3 pattern in the making

👉 European markets like the FTSE, CAC, DAX and Stoxx have also almost recovered all losses in what appears almost like a V shape rally on the daily charts.

👉 The Asian markets have seen an equally valiant recovery across the region with only Hang Seng still having a fair distance to cover. In fact, Australian, Korean and Indian markets have managed to close even above the April 2 close in the last week.

👉 Netflix has closed at an All Time High last Friday.

👉 Bitcoin gave a very bullish breakout from a long double bottom pattern last Tuesday and has closed higher on Friday

👉 Gold, after an eye popping unprecedented rally in all of 2025, looks weak for the first time on the weekly chart, having made a gravestone doji with an ominously long upper wick.

Weekly chart of Gold illustrating a long Gravestone doji

What lies ahead? If one were to believe the language of the charts minus all the noise, the markets are clearly headed up. And gold down. Even dollar seems set to recover after an extended decline with the first green shoot visible on the weekly chart last week, a decent green hammer that signifies a sell failure. Fascinating times ahead!

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