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Index Focus - 16 August 2016

Equities are on the back foot today after Asian bourses failed to follow US counterparts higher. The latter may well have delivered fresh all-time highs for a second week in a row but is being flatly ignored by European markets back to a full quota after holidays yesterday. A weaker US dollar thanks to Fed comments trimming expectations of a US rate rise this year is helping the commodity space, especially Oil which continues to bounce. The reciprocal of a weaker USD – a stronger Yen and firmer Euro – is, however, only serving to hold back exporters, seeing many equities trim recent gains and the DAX underperform European peers. But are things looking up again?

The UK 100 is edging back towards intersecting 1-month rising support at 6900. Bounce or breach? The DAX 30 has found support via rising August lows at 10630. Oversold? Dow Jones futures have bounced off the floor of their August rising wedge at 18580. Gold has bounced at $1340 to maintain its 3-month uptrend.

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Where next?
  1. Will the index fall towards lows of 6610? or;
  2. Will the index rise towards highs of 6950?

The UK 100  is edging back towards intersecting 1-month rising support at 6900. Is prior resistance set to turn support and deliver a bounce?

Watch levels: Bullish 6935, Bearish 6890

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 6905, 6900, 6895, 6880, 6865, 6840, 6810
  • Potential resistance: 6920, 6930, 6943, 6955

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 10100? or;
  2. Will the index rise towards highs of 10800?

The DAX 30 has found support via rising August lows at 10630. Oversold and set for a bounce back to recent highs?

Watch levels: Bullish 10675, Bearish 10625

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 10670, 10660, 10650, 10640, 10630, 10600
  • Potential resistance: 10680, 10700, 10720, 10740, 10760, 10800

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 18670? or;
  2. Will the index fall towards lows of 18250?

Dow Jones futures have bounced off the floor of their August rising wedge at 18580. Back pointing north are we set for fresh all-time highs

Watch levels: Bullish 18620, Bearish 18575

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 18600, 18590, 18580, 18550, 18530, 18500, 18465
  • Potential resistance: 18610, 18620, 18630, 18640, 18660, 18670

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 $1375?

Gold has bounced at $1340 to maintain its 3-month uptrend. Bearish rising wedge, neutral symmetrical triangle or bearish Head & Shoulders top?

Watch levels: Bullish $1353, Bearish $1346

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1348, 1347.5, 1345, 1339, 1335
  • Potential resistance: 1350, 1352, 1357, 1365, 1375

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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