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Index Focus – 9 Oct - 9 October 2015

Equity indices are largely positive even it off overnight highs. This stems from a bit of profit-taking following strong rebounds but only takes a little of the shine off a second-wind for risk appetite in the wake of dovish Fed minutes which many believe close the door on a 2015 rate hike, reduce uncertainty on timing (not until 2016) and helpfully prolongs the loose monetary policy party.

UK Index  uptrend and breakout found resistance around 6445. DAX holding steep October uptrend. Wall St maintaining break back above 17000. Gold still testing $1153 highs of late September.

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Where next?
  1. Will the index rally towards 7000? or;
  2. Will the index fall back towards 5770?

UK 100  breakout at 6300 went as far as 6445 overnight. This level equates to a 50% retrace of the April-August 7100-5770 declines and could prove a hurdle. However, once over it, 6600 June falling highs look feasible, corresponding to 61.8% retrace. Not a bad recovery. And quick.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 6400, 6350, 6300
  • Potential resistance: 6445, 6500, 6600

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 11000? or;
  2. Will the index pull back towards 9400?

Germany’s DAX is holding its steep October uptrend and back above 1000 bodes well for a revisit of 10400.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 10040, 10000, 9940
  • Potential resistance: 10150, 10200, 10300

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 17800? or;
  2. Will the index fall towards 15300?

US Dow Jones futures broken back above 17000 which importantly takes it above the lows of Dec and Jan and into the top half of the 2015 trading range which means potential for a return to  levels last seen in June/July

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 17000, 16970, 16900
  • Potential resistance: 17100, 17120, 17200

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 towards $1170? or;
  2. Will Gold fall towards $1110?

Gold continues to test recent $1153 highs. Can the breakout take it out from a narrowing pattern and 8-month downtrend? Helped by weak USD on dovish Fed message.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 1150, 1140, 1135
  • Potential resistance: 1155, 1157, 1170

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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