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Index Focus – 9 Sept - 9 September 2015

Equities posting healthy gains thanks to revived stimulus hopes from Japan and China coupled with expectations that the Fed may bow to ‘requests’ from the likes of the IMF and World Bank to hold off from a rate hike next week and avoid a more negative financial market reaction and potential turmoil in emerging economies.

UK Index & Dow broken out from recent narrowing patterns, maintaining uptrend and recovery from 2015 lows but so far unable to get above key late-August highs. Dax made more meaningful break from bullish ascending triangle and subsequent pullback already found support. However are these Break-outs or merely fake-outs? Gold bumbling along around $1120-1125 with risk appetite negating demand for the safehaven.

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Where next?
  1. Will the index break higher towards 6760? or;
  2. Will the index fall back towards 5770 ?

UK 100  broken out from recent narrowing pattern. This keeps alive uptrend from 2015 lows, and the possibility of regaining 6700, however, we note inability so far to get above the key 6260 late-Aug highs we have been highlighting recently. Close but no cigar just yet.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend to sideways
  • Potential support: 6200, 6140, 6100
  • Potential resistance: 36270, 6340, 6400

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 on towards 11400? or;
  2. Will the index break down towards 9315?

Germany’s DAX broken out from bullish ascending triangle pattern and prior resistance turned to support. At first glance, a bullish reversal been delivered  Potential for gains to built on and 11000 regained. 

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend to sideways
  • Potential support: 10400, 10320, 10250
  • Potential resistance: 10520, 10650, 10800

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 break up towards 18140? or;
  2. Will the index fall back towards 15250?

US Dow Jones futures, like the UK Index , has broken out from its recent narrowing pattern but has yet to better the late Aug highs we have been harping on about. Watch for support at 16600 to keep 3-week recovery uptrend alive. A test of 16500 could be a worry.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend to sideways
  • Potential support: 16600, 16560, 16500
  • Potential resistance: 16700, 16800, 17000

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  break out towards $1,170 highs? or;
  2. Will Gold break down towards $1,077 lows?

Gold moving closer to the apex of a bearish descending triangle pattern. Still in downtrend from Jan as risk appetite and strong USD hinders safehaven appetite..

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1120, 1116, 1110
  • Potential resistance: 1125, 1127, 1133

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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