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Index Focus – 3 Oct - 3 October 2014

Global markets have staged a small recovery this morning after another big sell off yesterday, in particular across Europe. Geo-political unrest is still causing concern amongst investors. German markets are closed today for Unity day whilst traders will tread cautiously ahead of today’s Non-farm payroll data release this afternoon.

The UK’s UK 100  broke below two key support levels yesterday to trade near 2014 lows. Next level of support should come around 2014 lows of 6396 before a possible retreat to 6300. Prior support may now turn resistance with the first key level to test being 6500. The 20 day moving average has broken below the 50, 100 and 200 day moving averages, whilst the RSI is still in oversold territory.

Germany’s DAX is closed today which could give traders a rest bite after the recent sell off. Dax futures are trading positively this morning taking its lead from the like of the UK 100 . The downtrend from mid September is still intact, although support was found yesterday 9164, a break of which could see the Dax heading down towards prior support at 9030 then towards August lows of 8900.

The US Dow Jones broke below a key support level yesterday only to break back above later in session. Futures are pointing to a higher open, however, traders will be cautious ahead of today’s Non-farm payrolls. Support is still there at 16774 and again at 16678. Resistance may be found at 16876, 16948 and then around 17000.

Click below to view graphs.

Where next?
  1. Will the index rise towards highs of 6906? or;
  2. Will the index fall below lows of 6395?

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways, Correction
  • Potential support: 6396, 6307
  • Potential resistance: 6500, 6528, 6680

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 10000? or;
  2. Will the index fall below lows of 8900?

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 9164, 9044, 8900
  • Potential resistance: 9265, 9325, 9400

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 16260?

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 16778, 16680, 16588
  • Potential resistance: 16876, 16948, 17021

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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