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Index Focus – 20 Nov - 20 November 2014

Markets are trading lower this morning after some weak PMI data from Europe released today. The minutes from the Fed meeting did little to spark a sustained move as the Dow has an initial jump higher before quickly retracing back to pre-minute levels to closed flat on the day. Elsewhere, Goldman Sachs Chief Economist expects the Fed to hike rates in September 2015,although there is a risk of a Fed bungle if it hikes too early, adding that low inflation may mean the Fed pushes back the first rate hike to 2016. Chinese HSBC manufacturing PMI came in lower than expected overnight with a reading of 50 which shows stagnation. Today we have a raft of PMI data across the Eurozone and States which may be worthwhile keeping an eye on.

 

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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  is continuing its 5 week up trend although it has broken back below its 50 day moving average which could now provide resistance to the upside. Support was found at the 100 day moving average and rising trend line. Support still looks plentiful to the downside , although the RSI is still declining and now getting close to oversold territory.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways, Recovery from lows
  • Potential support: 6678, 6658, 6646,
  • Potential resistance: 6703, 6722, 6800

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 is trading lower this morning, being fueled by weak PMI data released this morning. The DAX has broken below its 50 day moving average and is now heading towards its 100 day moving average around 9360 which could provide support should we see a drop to those levels. The RSI is still declining and it now trading in oversold territory.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways, Recovery from lows
  • Potential support: 9400, 9360, 9330
  • Potential resistance: 9464, 9490, 9529

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 17734? or;
  2. Will the index fall towards lows of 15845?

US Dow Jones is still trading in its 2 week range, although it has now broken below its 20, 50 and 100 day moving averages whilst it did manage to find support at its 200 day moving average. The RSI is still declining although still some way off oversold territory.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways, Recovery
  • Potential support: 17629, 17584, 17540
  • Potential resistance: 17649, 17671, 17700

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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