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Index Focus – 21 May - 21 May 2015

Equity markets mixed this morning following an uninspiring set of Fed minutes which only went to confirm what markets had been assuming – June rate hike not on the cards – and weak China Manufacturing data bolstering calls for more stimulus. The UK’s UK Index  supported by hopes of more China stimulus and M&A. Germany’s DAX held back by disappointing PMI readings, a EUR pull-back and Greek concerns. Wall St back from highs on questions over strength of US recovery. Gold flat following recent USD bounce and lack of macro panic.

Where next?
  1. Will the index rise towards highs of 7127? or;
  2. Will the index fall towards lows of 6810?

UK 100 still making its way towards the apex of a bullish ascending triangle pattern. A breakout could complete at all-time highs. Uptrend from 7 May intact but yet to better falling highs from mid-April.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 7000. 6990, 6960
  • Potential resistance: 7020, 7039, 7088

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 12411? or;
  2. Will the index fall towards lows of 11165?

Germany’s DAX is taking a breather after its breakout from the April downtrend. Pause before another leg higher? Or drop back to 11600 support?

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 11742, 11635, 11600
  • Potential resistance: 11884, 12050, 12411

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 18365? or;
  2. Will the index fall towards lows of 17570?

The US Dow Jones has found support around its recent 18200 breakout. Healthy pull-back before resumption of uptrend? Or sign of worse to come? Steep 7 may uptrend breached?

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 18220, 18200, 18030
  • Potential resistance: 18350, 18367

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 $1233? or;
  2. Will Gold fall towards lows of $1170?

Gold holding around $1210 with bulls and bears evenly matched in terms of optimism and fear after Fed minutes (no rate rise in June) stopped the USD rally. Note 100- and 200-day MAs proving supportive. Beware of potential for current pause being merely consolidation before another leg down (hawkish fed chatter and/or strong USD data could be the culprit). A weaker USD would be a help. 

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 1203, 1200, 1191
  • Potential resistance: 1213, 1220, 1233

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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