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Index Focus – 17 Oct - 17 October 2014

Global markets have had a relatively calm start this morning after yet another extremely volatile trading session yesterday. With concerns over global growth, geo-political tensions and the spread of Ebola the markets experienced wildly exaggerated moves. Better than expected macro data from the US helped the markets off their lows, with the S&P 500 and the Nasdaq actually finishing positive on the day.

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Where next?
  1. Will the index rise towards highs of 6906? or;
  2. Will the index fall below lows of 6008?

The UK’s UK 100  registered a fresh 16 month low yesterday before regaining around 150 points. Support for the downside of the UK 100 appears light with the first level of resistance to the upside possible at 6291. The RSI is trading on the oversold level as the UK 100 attempts to finish the week off with a blue day.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways, Correction
  • Potential support: 6056, 5968
  • Potential resistance: 6291, 6393, 6503

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 10000? or;
  2. Will the index fall below lows of 8100?

Germany’s DAX had another wildly volatile trading session yesterday, at one stage registering a fresh year low. However, after breaking into the 8400’s the DAX then regained over 200 points to trade back into the 8600’s. Resistance may come around 8694, with a break giving potential to see 8850. The RSI is rising as it attempts to break out of oversold territory.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways, Correction
  • Potential support: 8535, 8480, 8406
  • Potential resistance: 8694, 8849, 9034

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 17366? or;
  2. Will the index fall below lows of 15800?

The US Dow Jones looks set for a stronger open this afternoon with the futures up around 100 points this morning. A brief dip below 16000 saw the Dow rally back into the 16000’s towards the close of play, with the S&P 500 and Nasdaq actually finishing positive on the day. The RSI has begun to move away from the oversold level.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways, Correction
  • Potential support: 15982, 15931, 15720
  • Potential resistance: 16072, 16282, 16423

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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