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Index Focus - 20 January 2016

Equity markets are in the green this morning, kicking off the latest round of market rallies based solely on blind hope. This is of course after Chinese data disappointed leading investors to convince themselves that the People’s Government will play superhero – A role it’s played with very limited success every other time Chinese data has disappointed with subsequent equity market strength short lived at best. Again, with no real change in the global situation, and Crude prices ticking back up towards $30, the scope for going long is diminishing fast. It will very soon be time to start looking at short opportunities again…

UK 100  a few points away from a re-test of 6000. DAX continuing to bounce from 17 Jan 9385 lows and nearing a test of the Jan downtrend. Wall St pausing at 16250. Gold’s broken out above falling resistance and is testing $1095 once more.

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Where next?
  1. Will the index rally towards 6000? or;
  2. Will the index fall below lows of 5735?

UK 100 has pulled back slightly from initial gains at shorter-term resistance, which is a concern for bulls who will have eyed a continuation towards longer term trend of falling highs. RSI has peaked at overbought.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 5850, 5837, 5800
  • Potential resistance: 5875, 5900, 5925

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 rally towards 11400? or;
  2. Will the index fall back to 9400?

DAX testing 2016 steeply falling highs but the rally from 9400 appears to be losing momentum. Note falling highs on the RSI since Oct 2015, but it should be a while yet before resistance keeps it out of bullish territory.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 9620, 9525, 9380
  • Potential resistance: 9730, 9765, 9940

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 17700 or;
  2. Will the index fall towards 15900?

US Dow Jones broke out above steeply falling highs but has since fallen back, with a now steeply falling support line offering little in the way of protection! RSI struggling to go bullish in 2016.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 16200, 16160, 16090
  • Potential resistance: 16266, 16300, 16400

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 $1190? or;
  2. Will Gold fall towards lows of $1046?

Gold’s uptrend is continuing – though it’s not a get rich quick scheme. Support found just below $1090 with upside likely (once all this Chinese stimulus mania wears off) to the 100-day MA $1105.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 1088, 1085, 1080
  • Potential resistance: 1095, 1100, 1105

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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