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Index Focus - 7 April 2016

Equities are back on a better footing this morning, thankful for a dovish set of Fed FOMC minutes last night. These essentially put paid to any US rate hike in April by offsetting recently hawkish tones from certain Fed members. Coupled with an oil price that continues to reverse recent weakness and we are seeing a continuation of the improved  risk appetite yesterday with less uncertainty about the path for monetary policy normalisation which has a global impact. Can bullish sentiment hold into the end of the week to try and ensure a better start to the quarter than we had in Jan?

UK 100  tested 6200 channel highs again but a breakout still eludes. DAX30 bounced off support at 9500 to keep it in a shallow March uptrend . Wall Street/Dow bounced off 17550 support to maintain March rising trend. Gold registered a bullish breakout at $1230.

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Where next?
  1. Will the index rise towards highs of 6240? or;
  2. Will the index fall towards lows of 6060?

The UK 100  bounce took it all the way back to 6200, but the challenge was brief and we have already eased back. Another test of 9-month falling highs, but a test is just a test. Breakout possible, or another southerly jaunt on the cards?

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 6165, 6140, 6110
  • Potential resistance: 6180, 6195, 6205

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 10870?

The DAX has bounced off rising support at 9500 which keeps it in a March uptrend although that weaker USD and thus stronger EUR is hindering exporter names. Is there catch-up potential with index peers? Back to the highs?

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 9650, 9630, 9600
  • Potential resistance: 9700, 9750, 9800

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 17120? or;
  2. Will the index rise towards highs of 17850?

The Dow Jones has bounced off rising support at 17550 which keeps the March rising trend alive and well, albeit a shallower pace following the 15% 2-month rebound from 2016 lows.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 17650, 17620, 17600, 17560
  • Potential resistance: 17700, 17720, 17730, 177750

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 $1208? or;
  2. Will Gold rise towards highs of $1285?

Gold has made a bullish breakout at $1230 which  sees it get beyond a 1-month trend of falling highs resistance. Reversal to the cards? Weaker USD helping the dollar-denominated safehaven.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: uptrend
  • Potential support: 1235, 1230, 1225
  • 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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