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Index Focus - 4 January 2016

Equity markets have made a rather negative start to 2016, with China making an early appearance to remind us of global growth woes and FX wars, keeping the commodities space under pressure, while geopolitical tensions in the Middle East are adding to existing volatility in the price of oil. While the latter may be a fresh driver for the new year, the former along many others (Eurozone struggles, US recovery, interest rate normalisation, deflation) have picked up where we left off.

UK Index  bounced off 6100 but still under pressure from pre-New Year recovery highs. DAX testing rising support at 10320. Wall St trading off 17080 2.5 month base. Gold close to testing mid-November falling highs $1076. 

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Where next?
  1. Will the index rise above highs of 7135? or;
  2. Will the index fall towards lows of 5766?

UK 100  fallen back from pre-New year highs and ceiling of 3-month falling channel. Break below mid-Dec rising support 6200 keeps index under pressure with things morning’s bounce level being tested anew.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 6105, 6102, 6100
  • Potential resistance: 6120, 6140, 6155

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 highs of 12400? or;
  2. Will the index fall towards lows of 9300?

Germany’s DAX  found support at mid-September rising lows. Will it hold and keep the uptrend intact? Or will we get a breakdown?

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 10350, 10315, 10300
  • Potential resistance: 10430, 10450, 10500

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 highs of 18000? or;
  2. Will the index fall back towards lows of 15900?

US Dow Jones futures bounced off support at 17100 to trade of its 2.5 month base. If this level holds, potential for bounce towards 17700. If we breakdown, however, potential for declines to 15900. Note RSI oversold.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 17140, 17120, 17100
  • Potential resistance: 17170, 17190, 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 rise towards highs of $1180? or;
  2. Will Gold fall towards lows of $1046?

Gold’s bounce off $1060 has potential to take it towards a test of $1076 where resistance is likely via falling highs dating back to mid-November. Still in long-term downtrend since October 2012.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 1072, 1070, 1068
  • Potential resistance: 1074, 1075, 1076, 1080

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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