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Index Focus - 12 February 2016

Equity markets showing some welcome gains, with bounces from yesterday’s lows in some cases testing dominant downtrends or even breaking back above recently breached support levels. Some solace being sought from an oil price bounce and shares in the troubled financials in positive territory thanks to positive results from post-crisis struggler Commerzbank and JPMorgan CEO Jamie Dimon putting $26m of his money where his mouth, spending a year’s pay on his bank’s shares. Maybe even an element of risk on into the weekend after a torridly bearish week? Even with the prospect of Chinese markets back online Monday after a week’s holiday?

UK Index  broken back above 5600. DAX in 8850 no man’s land, in an uptrend hindered by a downtrend. Wall Street trying to get back above 15800. Gold back from its $1263 reversal highs, in potential down-channel as risk appetite returns and safehaven interest falls.

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Where next?
  1. Will the index rally towards highs of 6130, or;
  2. Will the index fall towards lows of 5500?

UK 100 broken back above 5600, with rising lows from yesterday, but it still faces Feb falling highs at 5700. Can 5600 revert to support?

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 5600, 5590, 5560
  • Potential resistance: 5635, 5650, 5700

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 9450? or;
  2. Will the index fall towards lows of 8700?

DAX still deciding what it wants to do, sitting in the apex of a converging pattern, recovering from yesterday’s lows all the while hindered by February downtrends.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 8820, 8810, 8750
  • Potential resistance: 8875, 8900, 8920

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 16500, or;
  2. Will the index fall towards lows of 15550?

US Dow Jones found a floor at 15500 and stepped up to 15650, but yet to challenge yesterday’s breached support at 15800.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 15715, 15675, 15650
  • Potential resistance: 15780, 15800, 15850

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 $1263? or;
  2. Will Gold retrace towards lows of $1200?

Gold may have seen its reversal peak at $1263, hindered by a revival in risk appetite as equities recover. In retreat, potential down-channel but also with potential support at $1232

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1235, 1232, 1230, 1220
  • Potential resistance: 1240, 1245, 1250

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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