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Index Focus – 16 June - 16 June 2015

Once again Greece is the driver of the UK 100 , DAX and DOW giving up more ground, with yet another day passing and opportunities for progress being passed up by both sides. Impressive stubbornness means the saga continues and the clock ticks towards D-day  (sorry, in this case ‘D’ refers to Default and potentially Disaster rather than rescue). Or does it? There is talk now of a work-around which could see Greece allowed to miss debt payments but avoid default as the IMF is discussing with Ukraine.  In the end though, are we not just prolonging the inevitable? Gold perked up in terms of volatility to trade a wider range as safehaven demand increases in the face of a hindering USD strength while the Fed prepares to update policy tomorrow.

Where next?
  1. Will the index rise towards highs of 7127? or;
  2. Will the index fall beneath lows of 6300?

UK 100  holding 6670 support as buyers emerge following the 2-week 4.5% sell-off to 4-month lows. Bulls looking for the level to hold and a rebound towards 7000 while the Bears are itching for a break lower and a fall to 2015 lows 6300.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 6670, 6500, 5200
  • Potential resistance: 6700, 6730, 6780

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 12,408? or;
  2. Will the index fall below lows of 9400?

Germany’s DAX testing last week’s lows, maintaining down channel from mid-April (now 13% off highs). Will it hold up or is their downside to the 200-day moving average at 10550, lower?  Channel ceiling coincides with 100-day MA. RSI falling highs from mid-March.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 10700, 10550, 10140
  • Potential resistance: 11520, 11910, 12000

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 rebound back towards highs of 18365? or;
  2. Will the index breakdown towards lows of 17550?

US Dow Jones holding up at May lows 17700. Three tests before a bounce? Potential for rebound towards 18000 but could also follow European peers lower. Yet to test 200-day MA 17665.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 17700, 17550
  • Potential resistance: 17760, 17900, 18100,

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 $1204? or;
  2. Will Gold fall towards lows of $1163?

Gold broken out of recent narrowing range (with volatility) to test last weeks $1190 highs and recent lows $1175. Still hampered by 50 and 100-day moving averages at $1193. Back in a sideways shift? Safehaven demand overcome USD strengthening fears?

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 1180, 1173, 1170, 1163
  • Potential resistance: 1188, 1191, 1193, 1195

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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