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Index Focus – 20 Jul - 20 July 2015

Equity markets are positive this morning but still struggling to better their highs of last week as Greek worries recede (pocket money received, ECB and IMF paid) but focus reverts swiftly to the prospect of a Fed rate rise by year-end (maybe even September) and the hindrance that a stronger USD is having on the commodities space and US corporates.

UK 100 still holding just below 6800, DAX30 just below 11800 and Dow Jones around 18100. Gold plunged to 5yr lows but rebound already found resistance at $1120.

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Where next?
  1. Will the index rally towards highs of 7,127? or;
  2. Will the index fall  towards lows of 6,410?

UK 100  rebound intact but struggling to better 6800. Pause before rally part 2? Support for any pullback likely around 6750 200-day MA.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 6780, 6770, 6750
  • Potential resistance: 6800, 6810, 6880

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 rally towards highs 12,350? or;
  2. Will the index fall towards lows of 10,650?

Germany’s DAX breakout from its falling channel is still in play but has encountered resistance at 11800. Support at 11700 this morning is a bullish sign.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 11700, 11600, 11500
  • Potential resistance: 11800, 11890, 12050

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 18,365? or;
  2. Will the index fall towards lows of 17,450?

US Dow Jones bounced from 18030 to get back above 18100 which keeps the uptrend 10 July intact and allows for the possibility that we revisit May highs 18365. Support likely at round number 18000.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: SIdeways
  • Potential support: 18100, 18030, 18000
  • Potential resistance: 18150, 18195, 18365

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 bounce back towards $1140? or;
  2. Will Gold fall back to 5yr lows $1084?

Gold downtrend accelerated overnight to testing 5yr lows. Bounce taken it well off worst levels, but work to do to recover breached support $1130. Lack of investor worry, lack of inflation, strong USD from hawkish Fed, China unloading all hindering the yellow metal.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 1110, 1105, 1084
  • Potential resistance: 1120, 1130, 1140

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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