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Index Focus – 20 Jan - 20 January 2015

Equity markets are higher again this morning after China Q4 GDP surprised to the upside suggesting its economic slowdown isn’t as severe as feared, reviving optimism in global growth even if it does cool hopes/delay likelihood of further China stimulus being forthcoming. Retail Sales and Industrial Production growth also impressed in the face of a slowing trend for growth in the world’s #2 economy. Gold remains around recent four-month highs of $1280 held back by the opposing forces of a strong USD and safehaven demand from uncertainty surrounding global growth.

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Where next?
  1. Will the index rise towards highs of 6700? or;
  2. Will the index fall towards lows of 6300?

The UK’s UK 100 ‘s traded at a fresh 1-month high yesterday before retracting back towards 6600. Support looks like around the 100 day moving average at 6590 while resistance could be met at this mornings high of 6630. The RSI is declining after bouncing of resistance at its overbought level.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 6609, 6591, 6550
  • Potential resistance: 6612, 6630, 6650

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 10340? or;
  2. Will the index fall towards lows of 9500?

Germany’s DAX is struggling to maintain a break above 10300 after recording an all time high yesterday. The bullish flag pattern we highlighted worked perfectly. Support may come around the 50 day moving average at 10272 whilst resistance could prevail at 10300. 

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 10272, 10200, 10116
  • Potential resistance: 10300, 10340

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 was closed yesterday with futures in the US pointing to a higher open today as it looks to reclaim last weeks highs. Resistance could come into play at 17600 while support could come at the 50 day moving average around 17513. The RSI is declining after bouncing from overbought.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 17513, 17493, 17437
  • Potential resistance: 17600, 17675, 17754

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 $1330? or;
  2. Will Gold fall towards lows of $1130?

Spot Gold has taken another leg higher this morning to trade at a fresh 5 month high. A bullish flag pattern indicates a possible run up towards 1330, a level that has been prior resistance.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1275, 1271, 1267
  • Potential resistance: 1290, 1300, 1330

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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