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Index Focus – 7 Jan - 7 January 2015

Equities are higher this morning thanks to a resilient Asian session despite another US sell-off. The Oil price has given up more ground with Brent now below $50/barrel after the UAE Oil minister said the supply glut could last months/years. Expectations are also for a rise in US Crude inventories  this afternoon and the USD remains strong ahead of the Fed minutes this evening. 

Concerns over the Greek election result and its remaining in the Euro persist although Eurozone worries appeased by better German Retail sales and unemployment. Key will be Eurozone CPI this morning which could add pressure on the ECB to launch QE as will US ADP employment change ahead of US Non-Farm Payrolls on Friday. Gold off its recent highs on strong USD.

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Where next?
  1. Will the index rise towards highs of 6650? or;
  2. Will the index fall towards lows of 6330?

The UK’s UK 100  remains in a downtrend from year-end but importantly found suppoprt at 6330 twice yesterday. If the high of 6450 can be exceeded there is potential for double-bottom reversal pattern to complete around 6575.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 6400, 6330
  • Potential resistance: 6450, 6500, 6575

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 10095? or;
  2. Will the index fall towards lows of 9130?

Germany’s DAX found support at 9400 yesterday which means a possibility that it rebounds again within the confines of a narrowing wedge pattern with rising lows from November and falling highs from early December. RSI neutral

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 9400, 9225, 9130
  • Potential resistance: 9600, 9700, 9800

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 18100? or;
  2. Will the index fall towards lows of 17045?

US Dow Jones still in a downtrend with momentum repeatedly lost following bounces (17750, 17500). Potential for retrace to December lows of 17045, but the 200-day moving average could come to the rescue around 17100 first. RSI not oversold yet.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 17300, 17045
  • Potential resistance: 17500, 17580, 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 $1240? or;
  2. Will Gold fall towards lows of $1167?

Spot Gold remains in an uptrend from 2 Jan lows, although its latest pull-back from 3-week highs may have seen it slip below rising support. Hindrance from strong USD even if safehaven qualities in demand. RSI pointing north, but not yet overbought.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 1210, 1200, 1180
  • Potential resistance: 1223, 1230, 1240

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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