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Index Focus – 11 Nov - 11 November 2014

Global markets edged higher once again yesterday with the US Dow Jones and S&P 500 both registered closing record highs. The Dow has now set 23 new record closing highs so far this year, whilst the S&P 500 has notched up 39. Trading was relatively subdued in the US yesterday whilst European bourses made strong gains, driven by corporate earnings. Markets have started higher this morning, once again being buoyed by some strong corporate earnings, namely Vodafone. Today sees yet another quiet day for macro data although the markets will be keeping a firm eye on developments in Ukraine as tensions continue to rise and threaten the ceasefire that already looks fragile.

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Where next?
  1. Will the index rise towards highs of 6905? or;
  2. Will the index fall below lows of 6070?

The UK’s UK 100  is trading at 5 week highs after strong corporate earning have pushed the markets up. The 3 week uptrend from October lows continues to hold with a run up towards 6700 now a strong possibility. The 50 day moving average is likely to remain a level of support for the UK Index as it continue to make inroads back towards September highs.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways, Recovery from lows
  • Potential support: 6593, 6574, 6563,
  • Potential resistance: 6615, 6653, 6689

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 rise towards highs of 9900? or;
  2. Will the index fall below lows of 8335?

Germany’s DAX has broken back above resistance at 9350, which could now provide support. The 3 week uptrend is still intact, however, overnight saw the 50 day moving average break below the 20 and 100 day moving averages, whilst the RSI is trading very close the overbought territory.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways, Recovery from lows
  • Potential support: 9348, 9327, 9305
  • Potential resistance: 9437, 9521, 9600

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 above highs of 17660? or;
  2. Will the index fall towards lows of 15845?

US Dow Jones continues its 3 week uptrend and also continues to register new all-time highs. The bullish flag pole formation we highlighted last week looks to be coming to fruition with 17700 in sight. Support is likely at the 50 day moving average around 17583 and again at the 100 day moving average. The RSI, however, has begun to fall after bouncing from overbought.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways, Recovery
  • Potential support: 17584, 17537, 17484
  • Potential resistance: 17660

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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