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Index Focus – 5 Feb - 5 February 2015

Equity markets mixed after the ECB decision not to accept junk grade Greek bonds as loan collateral. US Oil inventory data reinforced the global crude oil supply glut which weighs heavily on energy stocks and sees oil continue to leak from one-month highs. Gold failed to be boosted by renewed Greek worries, hindered by a stronger USD and China stimulus.

Where next?
  1. Will the index rise towards 6910? or;
  2. Will the index fall towards 6720?

The UK Index has fallen back further from its re-test of 2014 highs 6905 , which remain a significant hurdle,  finding support for a second time at 6800. The uptrend from mid-December remains intact but for now we sit within a 2-week sideways channel.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 6800, 6720
  • Potential resistance: 6860, 6910

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 10987? or;
  2. Will the index fall towards lows of 9430?

Germany’s DAX has rallied back from support at 10800 having touched all time highs of 10987 yesterday. The 2015 trend of rising lows remains intact for the moment, as does the 3.5 month uptrend with its breakout from the Nov-Jan pennant pattern

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 10800, 10620, 10540
  • Potential resistance: 10987

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 18100? or;
  2. Will the index fall towards lows of 17040?

While the US Dow Jones remain in a 1-month falling channel (17040-17800)  it has begun to test the ceiling at and a breakout could confirm a bullish Feb flag pattern offering upside to December highs.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 17560, 17300, 17040
  • Potential resistance: 17740, 17850, 18100

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 $1307? or;
  2. Will Gold fall towards lows of $1170?

Gold continues to fall off within its downwards trend from 22-Jan. While yesterday’s break-out above falling highs at $1280 failed to convert, overnight highs didn’t even get as far as the trendline of falling resistance, peaking at $1275. Note Support remains around $1250.

 

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 1255, 1224, 1205
  • Potential resistance: 1270, 1285, 1307

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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