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Index Focus – 26 June - 26 June 2015

Equities in the red accelerating their sell-off from late yesterday as we move into what is being billed as the last weekend for Greece to present acceptable reforms to its Creditors to unlock the bailout-avoiding funds it desperately requires. While another last-minute weekend agreement would surely mean a relief rally come Monday, continued stubbornness on both sides could equally take us into uncharted default/euro-exit territory and the accompanying uncertainty send markets lower.

UK Index now below 200-day moving average 6744. DAX back at 11400 support below ceiling of larger down-channel. Dow sitting the middle of 1-month range while Gold continues to languish around $1170, failing to benefit from safehaven demand despite Greece being on the cup of default.

Where next?
  1. Will the index rally back towards all-time highs of 7127
  2. Will the index continue falling towards support at 6625?

UK 100  on the back foot again today having found resistance again at 6875. Declines have come as far as the 200-day moving average 6744. Could a pause here and Greek inspired relief rally deliver the second shoulder of the bullish reverse head & shoulders bottom pattern which has been forming though June?, with upside to April all-time highs 7127.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 6700, 6650, 6625
  • Potential resistance: 6800, 6820, 6875

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 breakout towards highs of 12,408? or;
  2. Will the index fall back towards support at 9,400?

Little change on Germany’s DAX as it pauses around 11400-11600 at the ceiling of the 3-month falling channel at 11600. This could provide platform for a push higher via a bullish flag pattern but the channel needs to be breached.  Equally, we could revisit platform floor if Greece fails to strike a deal.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 11400, 11300, 11100
  • Potential resistance: 11600, 11850, 12050

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 rally on towards highs of 18185? or;
  2. Will the index fall back towards support at of 17700?

US Dow Jones sell-off below the 100-day-moving average puts it in the middle of its current 17700-18175 range. The index remains in a longer term uptrend. 

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 17875, 17850, 17700
  • Potential resistance: 17925, 18000, 18075

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 back to highs of $1232? or;
  2. Will Gold fall back towards support at $1142?

Gold down at recent lows, despite Greek impasse uncertainty and USD strength taking a pause. Failure to get above $1180 for last couple of days keeps alive downtrend from 200-day moving average $1204

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 1170, 1162, 1142
  • Potential resistance: 1180, 1188, 1204

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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