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Index Focus - 1 June 2016

Equities nursing losses this morning morning as yesterday’s breakdowns from comfortable consolidation/uptrends yesterday gather pace. This comes after a revival of geopolitical risk (Brexit poll) and a raft of mixed data from across the globe (run of poor US manufacturing; China and Eurozone PMIs failing to inspire; UK Consumers delaying borrowing). While  markets had been warming to the prospect of a summer US rate rise, they now appear not so sure, with a more prominent bearish sentiment now overpowering the hitherto bullish dominance that had ushered us to recent highs.

UK 100 broken below 6200, potentially in the midst of a bearish flag pattern back to 6150. The DAX30 topping out at 10400 has it back pointing towards the 10100 mid-point of its 4-month narrowing formation. Wall Street/Dow Jones futures are back below 17800, with an overnight rebound struggling to hold the regained level. Gold continues to benefit from risk-off sentiment, helping it reverse from $1200 3.5-month lows.

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Where next?
  1. Will the index fall towards lows of 6050? or;
  2. Will the index rise towards highs of 6290?

The UK 100 has tested 6200 in the midst of what could be a bearish flag pattern down to 6150. Further correction required?

  • Watch levels: Bullish 6205, Bearish 6175

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 6190, 6180, 6150
  • Potential resistance: 6200, 6220, 6235

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 8690? or;
  2. Will the index rise towards highs of 11400?

The DAX topping out at 10400 has it pointing back towards the 10100 mid-point of its 4-month narrowing formation. Will it follow the UK Index and fall all the way back to its recent breakout?

  • Watch levels: Bullish 10220, Bearish 10190

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 10300, 10280, 10270,
  • Potential resistance: 10320, 10340, 10370

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 17330? or;
  2. Will the index rise towards highs of 18150? 

Dow Jones futures are back below 17800, with an overnight rebound struggling to hold the regained level. Does the correction have legs?

  • Watch levels: Bullish 17765, Bearish 17715

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 17735, 17720, 17700
  • Potential resistance: 17760, 17790, 17825

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 $1200? or;
  2. Will Gold rise towards highs of $1305?

Gold’s continues to benefit from risk-off sentiment, helping it reverse from $1200 3.5-month lows sitting in a new rising channel.

Watch levels: Bullish $1225, Bearish $1208

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1215, 1213, 1210
  • Potential resistance: 1218, 1220, 1223

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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