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Index Focus – 4 Nov - 4 November 2014

European bourses are once again higher this morning, after a pause for breath yesterday that saw markets finish in the red. Both the Dow and S&P registered new record intraday highs during the trading session before selling off to close lower on the day.  Oil prices weighed on the markets after Saudi Arabia cut the price of crude to the US from next month. Tensions in Ukraine have come back into the spotlight after Ukrainian President Petro Poroshenko said rebel held elections in the country’s east violate a two-month-old cease fire. Traders will still be keeping one eye on Interest Rate decisions from both the BoE and ECB later this week as well as US Non-Farm Payrolls on Friday.

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Where next?
  1. Will the index rise towards highs of 6905? or;
  2. Will the index fall below lows of 6070?

The UK’s UK 100  failed to break above resistance at 6560 yesterday, a level that we had previously highlighted. The UK 100 did then fall below both its 50 and 100 day moving averages. However, it did find support around the 100 day moving average and is looking to head back into the 6500’s this morning, whilst the RSI is rising from a dip towards oversold territory.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways, Recovery from lows
  • Potential support: 6486, 6440, 6367,
  • Potential resistance: 6560, 6586, 6614

Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.

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Where next?
  1. Will the index rise towards highs of 9900? or;
  2. Will the index fall below lows of 8335?

Germany’s DAX has restarted its 2 week uptrend after a slight pull back yesterday. A brief dip below the 50 day moving average was quickly reversed, although resistance is again likely at 9350. Support to the downside may once again come around the major moving averages. 

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways, Recovery from lows
  • Potential support: 9290, 9198, 9096
  • Potential resistance: 9352, 9388, 9432

Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.

Click here for help with Support & Resistance Click here for help with technicals

Where next?
  1. Will the index rise above highs of 17428? or;
  2. Will the index fall towards lows of 15845?

US Dow Jones set a new all-time intraday high yesterday before pulling back towards the close. A break back above prior resistance this morning could see another attempt at a record high. Support may come around the major moving averages on the downside.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways, Recovery
  • Potential support: 17356, 17241, 17212
  • Potential resistance: 17392, 17428

Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.

Click here for help with Support & Resistance Click here for help with technicals

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