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Index Focus – 21 Jan - 21 January 2015

Equity markets are higher again this morning stemming from a largely upbeat performance in Asia following better Chinese GDP and solid German ZEW surveys yesterday, some stability in Oil, and widespread expectations/complacency that the ECB delivers tomorrow, keeping global central banks accommodative. Gold holds a five-month high around $1300, maintaining its northerly course and showing little sign of fatigue, helped by weaker USD overnight and safehaven demand from uncertainty surrounding global growth and ECB action tomorrow and Greek election at the weekend.

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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 overnight before meeting resistance at 6654. A break above this level could see the UK 100 on track for a run towards 6750. Support meanwhile could come into play around 6611. 

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 6628, 6611, 6574
  • Potential resistance: 6654, 6683, 6700

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 still struggling to break above 10300 with it proving resistance on a number of occasions yesterdays. Support may come into play at 10210 after the DAX broke below all of its major moving averages this morning. The RSI is falling and trading close to oversold. 

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 10210, 10166, 10122
  • Potential resistance: 10260, 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 did little to inspire yesterday, finding resistance around 17545 and support around 17475. The Dow has broken below all of its major moving averages whilst the RSI is also declining.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 17475, 17400, 17362
  • Potential resistance: 17496, 17543, 17600

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. The bullish flag pattern highlighted yesterday looks to be beginning to materialise with a possibility of a run up towards 1330. The RSI is still overbought.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1290, 1245, 1210
  • Potential resistance: 1300, 1310, 1327,

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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