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Index Focus – 8 Jan - 8 January 2015

Equities have taken another leg higher after the Fed Minutes suggested ‘patience’ meant no US interest rate rise for the next couple of FOMC meetings and optimism in the US recovery, Samsung reported better than expected results, Eurozone CPI data stoked hopes of ECB stimulus QE and a we had rebound by oil. 

Eurozone PPI this morning will likely add QE calls along with a plunge in German Factory Orders and static regional confidence surveys. Gold off its recent highs on strong USD and equity rebound.

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Where next?
  1. Will the index rise towards highs of 6650? or;
  2. Will the index fall towards lows of 6330?

The UK’s UK 100  has broken above 6450 meaning the bouble-bottom reversal pattern could complete around 6570. Nonetheless, 6500 proving a hurdle for the rebound, maintaining downtrend from end-Dec, while the 6570 target corresponds with falling highs from early-Dec.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend, reversal
  • Potential support: 6450, 6400, 6330
  • Potential resistance: 6500, 6575, 6650

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 10095? or;
  2. Will the index fall towards lows of 9130?

Germany’s DAX also finding resistance at falling highs from late-Dec. Still in a narrowing wedge situation (blue lines) with upside to 9800 and downside to 9400. Bulls will hope this is a continuation pattern of the October uptrend and breaks higher. RSI risen, but still not overbought

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 9400, 9225, 9130
  • Potential resistance: 9675, 9800

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 18100? or;
  2. Will the index fall towards lows of 17250?

US Dow Jones looks to have bettered its falling highs resistance from end-Dec. The break above 17600 should see the level revert to support helping with any weakness on the way back towards Festive highs. Note Daily chart supportive with trend of higher highs and lows.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend, reversal
  • Potential support: 17600, 17400, 17250
  • Potential resistance: 17775, 17950, 18100

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 Gold rise towards highs of $1260? or;
  2. Will Gold fall towards lows of $1130?

Spot Gold is taking a breather after a $50 rally in 2015. While still in a long term downtrend, recent price action around $1150 suggest potential for a reversal. The current pause on the 3-month chart also hints at the possibility of a bullish flag pattern (blue lines) and upside to October highs.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 1205, 1200, 1195
  • Potential resistance: 1218, 1223, 1250

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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