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Index Focus – 6 Aug - 6 August 2015

Equities rather mixed this morning as traders deal with conflicting arguments from Fed voters about a US rate rise in September and disappointing US ADP Jobs Adds having muddied the waters ahead of tomorrow’s key (it always is, n’est-ce pas?) Non-Farm Payrolls (NFP). Will job creation remain strong enough for the employment half of the FOMC’s dual mandate? All the while commodities remain under pressure, notably Oil and Gold, while earnings season delivers mixed message from round the world and we await confirmation of a Greek bailout agreement.

UK 100  found support at 6700 after backtracking from 6770 resistance from 2-month falling highs and 200-day MA. DAX30 still pushing on thanks to strong Factory Orders data and a persistently weak EUR. Dow Jones holding around recent lows 17500. Not much more to say on Gold as it flounders around $1085 in an ever narrowing range ($1082-1092)

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Where next?
  1. Will the index rally back towards highs of 6815? or;
  2. Will the index breakdown towards lows of 6,500?

UK 100  bounce off 6700 keeps uptrend alive while resistance yesterday at 2-month falling highs and 200-day MA puts us in a rising channel from 27 July. A break of 6770 and out of a bullish inverse head and shoulders pattern could lead to revisit of 2015 highs >7120.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 6715, 6700, 6680
  • Potential resistance: 6740, 6765, 6800

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 breakout towards highs of 12,400? or;
  2. Will the index fall back towards lows of 10,660?

Germany’s DAX continuing its bounce from 11,000 but is fast approaching 3.5-month falling highs which could represent a hurdle.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 11575, 11500, 11400
  • Potential resistance: 11675, 11720, 11800

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 breakout towards highs 18,150? or;
  2. Will the index breakdown below support at 17,500?

US Dow Jones found support at 17500 which maintains trend of rising lows but resistance yesterday at 17660 means it continues to wrestle with falling highs from 21 July. 

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 17500, 17460, 17450, 17400
  • Potential resistance: 17600, 17660, 17700, 17800

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 rally back towards falling highs of $1115? or;
  2. Will Gold break below support at 1080?

Some say Gold is broken, languishing around recent lows and in an ever narrowing trend. Could it break below 5.5yr lows after the recent pause? Note any breakout has multiple resistance hurdles to overcome.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 1083, 1081, 1080, 1077
  • Potential resistance: 1092, 1095, 1100

Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.

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