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Index Focus - 6 April 2016

Equities are mixed this morning with the UK Index and Wall St futures benefiting from a quartet of good news, however, the DAX remains stifled by Euro currency strength. Firstly, we had improved China PMI data, with the Caixin composite reaching 11-month highs. Secondly, the oil price continues to climb from recent lows after a US stockpile drawdown last night and ongoing hopes that the Doha meeting on 17 April will result in a production freeze. Thirdly, the Republican nomination circus threw a welcome curveball with Ted Cruz trumping rival Donald in the Wisconsin primaries. And lastly, while the Pfizer-Allergan deal collapsed may have dented stateside M&A sentiment, the European reaction has been more positive with hopes high that Pfizer’s quest to add growth will ultimately see it plump for a European healthcare name as opposed to simply purchasing a US one already domiciled on this side of the pond.

UK 100  bounced off 6060 and climbed back above 6100. DAX30 sell-off and breakdown has resulted in completion of bearish double-top at 9500. Wall Street trading between diverging trend lines of resistance and support 17580-17720. Gold still held back by 3-week falling highs at $1230.

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Where next?
  1. Will the index fall towards lows of 6060? or;
  2. Will the index rise towards highs of 6220?

The UK 100  bounce has seen the index climb back above the 6100 level, the mid-point of its 5-week sideways range. Rising lows since yesterday’s bottom. Bullish channel or bearish flag?

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 6105, 6095, 6090
  • Potential resistance: 6130, 6150, 6180

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 10100?  or;
  2. Will the index fall towards lows of 8700?

The DAX has completed its bearish double-top pattern at 9500. Downside over? The long candlestick wick of today suggests this may be the case, especially with RSI have recovered from oversold.

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.

Click here for help with Support & Resistance Click here for help with technicals

Where next?
  1. Will the index fall towards lows of 17430? or;
  2. Will the index rise towards highs of 17850?

The Dow Jones finds itself between diverging trendlines of support and resistance after the recent sell-off halted at 17600.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 17650, 17620, 17600
  • Potential resistance: 17695, 17720, 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 rise towards highs of $1285? or;
  2. Will Gold fall towards lows of $1208?

Gold remains hindered by both the trend of falling highs resistance of the last few weeks as well as today’s improved risk appetite dampening demand for the safehaven.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 1225, 1222, 1215, 1210
  • Potential resistance: 1230, 1235, 1237, 1240

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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