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Index Focus - 5 April 2016

Equities are in retreat this morning with overnight Asian sentiment dented by commodity price weakness and Yen strength as the USD languishes around recent lows. Oil is maintaining its backtrack from recent recovery highs, failing to get any support from optimistic Kuwaiti talk of a production freeze deal in Doha on 17 April, this as we prepare for what is sure to be another swelling of US Crude stockpiles via API data tonight and EIA data tomorrow. A pessimistic outlook from IMF Chief Lagarde, an unexpected drop in German Factory Orders and uninspiring Eurozone PMI Services are also weighing on sentiment ahead of the US earnings season.

UK 100  sell-off stemmed via at 6080 shallow rising  support. DAX30 breakdown from rising channel taken it back to 9600. Wall Street fallen back from multi-month highs to test rising support at 17650. Gold testing 3-week falling highs at $1230.

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Where next?
  1. Will the index fall towards lows of 6005? or;
  2. Will the index rise towards highs of 6240?

UK 100  weakness stemmed by shallow intersecting rising support at 6080. Note RSI oversold, which could lead to  another rebound that keeps us in the recent 61080-6220 range. Note potential for new narrowing range to develop with rising lows and falling highs.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 6080, 6075, 6070, 6060
  • Potential resistance: 6100, 6110, 6120, 6130

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 highs of 11400?  or;
  2. Will the index fall towards lows of 8700?

DAX rounding top and breakdown from rising channel has seen the index retrace 5% from its 10100 highs to revisit 9600. More downside on the cards?

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 9575, 9550, 9500, 9450, 9400
  • Potential resistance: 9600, 9650, 9667, 9720, 9750

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 highs of 17850? or;
  2. Will the index fall towards lows of 17200?

The Dow Jones has dropped back sharply from its recent multi-month highs to breach the 5-week trend of rising support. Reversal in motion, or merely a blip before it follows peers with a sideways move?

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 17600, 17560, 17500, 17400
  • Potential resistance: 17650, 17700, 17750

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 fall towards lows of $1208? or;
  2. Will Gold rise towards highs of $1285?

Gold is benefiting from the risk-off sentiment that has gripped markets this morning. This has helped the yellow metal test its 3-week trend of falling highs resistance at $1230. Is a breakout on the cards?

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1230, 1225, 1215
  • Potential resistance: 1235, 1240, 1245

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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