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Index Focus – 25 Aug - 25 August 2015

Equity markets are back in the blue this morning – hardly surprising given the dire session yesterday. Note no fresh good news to attribute an average 2.3% recovery in the UK Index , DAX and Dow indices, leaving the opportune snapping up of  cheap looking stocks as this morning’s driver.

China continues to underperform its peers in the Asia-Pacific region, with Shanghai Composite closing down 8% today. It’s a special case though, right?

Balanced US Fed chat keeping a September rate hike both on and off the cards after Lockhart waxed lyrical – a first interest rate rise this year (screams from nearby young people) accompanied by more the more relaxing tones of “…rates to nonetheless remain low for a long time…”

UK 100 currently +2%

Wall St. +2%

DAX pushing up through 3% gains

Continued dearth of positive news seeing Gold hold up just below $1150

Click below to expand sections

Where next?
  1. Will the index recover towards 6400? or;
  2. Will the index fall back below support 6000 ?

UK 100  paring yesterday’s losses, while still having much work to do to regain early Aug levels above 6400. Note potential for resistance around 6100 while the  daily RSI kicked back up from being extremely oversold yesterday.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 6000, 5800
  • Potential resistance: 6100, 6400, 6600

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 rally towards 11500? or;
  2. Will the index pull back beneath 9650?

Germany’s DAX found support at 9680 this morning. Daily RSI again kicking up from oversold (still there though). A successful test of 10,000 again being sought by bulls but by no means guaranteed given what happened yesterday.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 9500, 9000, 8500
  • Potential resistance: 10000, 10500, 10750

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 bounce back towards 17000? or;
  2. Will the index break down beneath support at 15800?

US Dow Jones futures has support at 15800 this morning after being down 1000pts just after yesterday’s open. Round number 16000 likely to hold firm. Daily RSI Kicked up. 

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 15800
  • Potential resistance: 16500, 17000

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 bounce towards highs of $1170? or;
  2. Will Gold fall back beneath support at $1145?

Gold’s consolidation pattern now a widening ‘megaphone’ pattern, in which bears often win out in the end. Beware a recovery in the equity markets as bargain hunters run amok. 

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 1145, 1125
  • Potential resistance: 1150, 1155, 1160

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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