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Index Focus - 3 February 2016

Equity markets mixed this morningwith a little oil price strength stemming earlier declines. Markets could be moving on past a string of arguably expected Oil Major earnings reports, while we note the potential for this to be mere consolidation ahead of further declines. After all, the drivers remain the same. While we look to mid-week US crude inventory data for direction on the oil price and thus equity market strength, note however that hawkish US Fed chat praising stateside economic strength (despite oil woes…) may push investors to concentrate on fundamentals a bit more, rather than stock markets.

UK 100 taking a break around 5910 indicating a loss of recovery momentumDAX in similar situ, yet maintaining the possibility of further gains to 9600. Wall St futures bouncing nicely in a rising channelGold bulls queueing up just below $1130 under intersecting resistance, yet maintaining just as much support.

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Where next?
  1. Will the index rally towards 6100? or;
  2. Will the index fall below lows of 5600?

UK 100 trying to hold back above 5900 after yesterday’s breakdown . The reversal from 2016 highs maintains long term downtrend from May 2015.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 5900, 5865, 5848
  • Potential resistance: 5950, 6000, 6100

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 10150? or;
  2. Will the index fall back to 9250?

The DAX has found support north of overnight lows and is making a valiant effort to reverse the early morning sell-off. Bulls will look to a break above 9550 while bears seeing the overnight bounce as mere consolidation.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 9500, 9475, 9435
  • Potential resistance: 9550, 9575, 9600

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 16600, or;
  2. Will the index fall towards 15450?

US Dow Jones still in rising channel having bounced strongly off its floor this morning. Potential resistance around current levels, though. Retrace to 16200 shouldn’t worry bulls, but a beak back below that level might.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 16200, 16140, 16100
  • Potential resistance: 16240, 16300, 16335

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 above $1130? or;
  2. Will Gold break down towards lows of $1050?

Gold’s off recent highs $1130 again, with rising lows seeing pressure build beneath intersecting resistance.We still see $1120 as key level to hold to keep uptrend unchallenged.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1124, 1120, 1116
  • Potential resistance: 1128, 1130, 1131

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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