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Index Focus - 30 March 2016

European bourses have been given a leg up by surprisingly dovish rhetoric last night from Fed Chair Janet Yellen who clearly took the opportunity to clarify to both markets and any FOMC boat-rockers that the party line remains ‘cautious’. This has pleased the investment community via a weaker USD and April’s meeting being unlikely to result in another interest rate hike on account of global economic and financial market risks. On the flip side continued reference to such headwinds just reinforces the fact that the global economic recovery remains rather fragile and investors very short-sighted. All this as we gear up for what could prove a challenging first quarter earnings season stateside.

UK 100  on second leg of bullish flag pattern towards 6230. DAX30 broken above recent resistance to regain 10000. Wall Street broken above 17650 making headway towards 17900 Dec highs. Gold bounced off $1235 to test falling highs resistance around $1243 several times overnight.

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Where next?
  1. Will the index fall towards lows of 6000? or;
  2. Will the index rise towards highs of 6240?

UK 100  on second leg of bullish flag pattern which could see it rally as high as 6230. This would see it test the recent 6220 channel ceiling, but would that be enough for a breakout to overcome the long-term downtrend?

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 6180, 6160, 6140
  • Potential resistance: 6200, 6215, 6238

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 fall towards lows of 9400?  or;
  2. Will the index rise towards highs of 10100?

DAX broken above recent highs 9950 to regain 10000 which open up the possibility that recent highs 10100 are revisited.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 10015, 10000, 9950
  • Potential resistance: 10050, 10085, 10100

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 15500? or;
  2. Will the index rise towards highs of 17900?

The Dow Jones has broken above 17650, extending its rebound and quest to regain Dec highs of 17900. However, note multiple potential resistance levels loom large.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 17700, 17675, 17640
  • Potential resistance: 17730, 17750, 17810

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 made a few tests of March falling resistance at $1244 overnight thanks to the weaker USD. Pause before a breakout or retrace on the cards?

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 1235, 1230, 1225
  • Potential resistance: 1244, 1250, 1255

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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