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Index Focus – 14 Jan - 14 January 2015

Equity markets are reversing yesterday’s gains after the World Bank cut global growth forecasts, after lowering the prospects of the Eurozone, Japan, Brazil and Russia. Industrial commodities remain weak with Oil and Copper having tested fresh lows on growth worries and OPEC stubbornness. ECJ decision on ECB’s OMT (and thus QE) favourable but growth worries already outweighed brief relief rally.

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Where next?
  1. Will the index rise towards highs of 6580? or;
  2. Will the index fall towards lows of 6330?

The UK’s UK 100  has broken below 6450 which we had hoped would serve as support. Downtrend from late-Dec still in play, and potential breakdown from narrowing pattern highlighted yesterday. Hindered by commodity stock drag.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 6400, 6350, 6330
  • Potential resistance: 6450, 6500, 6550

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 towards highs of 10100? or;
  2. Will the index fall towards lows of 9130?

Germany’s DAX has tested the upper end of its narrowing pattern, which bodes fell for further advances/attempts, although off highs. Uptrend from early January intact, although testing of wedge ceiling could see a return to within the confines.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 9800, 9600, 9450
  • Potential resistance: 9900, 1000, 10100

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 towards highs of 18100? or;
  2. Will the index fall towards lows of 17040?

US Dow Jones has reversed much of the 2015 gains on a revival of growth worries. Volatility very much in play.  Sideways since December. Waning momentum was a signal late last week.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 17500, 17400, 17260
  • Potential resistance: 17, 650, 17900, 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 maintains its uptrend within the bullish flag pattern, but it took a breather as equities advances yesterday. Potential still to reach highs of $1260 but resistance via falling highs from October 2012 and 200-day MA which have hindered the metal’s progress for so long need to be overcome first.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 1220, 1205, 1170
  • Potential resistance: 1245, 1260, 1300

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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