Indices

Technical Analysis – US 500 index breaches MAs, attempts to resume climb

Posted on May 18, 2020 at 7:20 am GMT

US 500 stock index (Cash) in previous sessions found a foothold at the advancing 200-period simple moving average (SMA) currently at the 2,789 level, that being the 50.0% Fibonacci retracement of the down leg from the all-time-high of 3,396.64 till the 39½-month low of 2,183.95. At present, the price has pierced above the mostly flat 50- and 100-period SMAs and the positive move seems to be backed by the short-term oscillators. The MACD in the negative zone is above its [..]

Technical Analysis – US 30 index’s ascent slows, forming head and shoulders pattern

Posted on May 15, 2020 at 9:37 am GMT

US 30 stock index’s (Cash) one-month ascent from the multi-year low of 18,170 seems to have eased, forming a head and shoulders pattern on the daily timeframe. The price is currently testing the neckline of the pattern barely under the 23,869 level, that being the 50.0% Fibonacci retracement of the down leg from the all-time-high of 29,582.61 to the 40½-month low of 18,170. The short-term oscillators appear to be leaning towards the downside, accompanying the already negatively charged simple moving [..]

Technical Analysis – UK 100 index’s correction from 8½-year low at risk

Posted on May 14, 2020 at 2:59 pm GMT

UK 100 stock index (Cash) is losing steam within the Ichimoku cloud after reversing from the 6,230 level, that being the 50.0% Fibonacci retracement of the down leg from the 7,689 peak to the multi-year low of 4,778. Backing the last two-week deterioration in price is the fading red Tenkan-sen line and the falling stochastics. Moreover, the RSI is picking up negative momentum by dipping below its neutral threshold, while the simple moving averages (SMAs) retain their bearish tone, which [..]

Technical Analysis – JP 225 index steadily gains ground

Posted on May 13, 2020 at 2:32 pm GMT

JP 225 stock index (Cash) continues to gradually appreciate backed by the positively charged simple moving averages (SMAs). Further fuelling the upward incline, are the Ichimoku lines – though slightly weakened – and the Ichimoku cloud. Glancing at the short-term oscillators, they too reflect some stalling in momentum despite remaining in positive territories. The MACD, in the positive section, has slipped below its red signal line, while the RSI, above its neutral threshold has turned downwards. If the positive structure [..]

Technical Analysis – GER 30 Cash index retains bullish bias in short-term

Posted on May 12, 2020 at 1:28 pm GMT

The GER 30 Cash index has been trading in an upward sloping channel since March 27 and is resting near the 20-period simple moving average (SMA) in the 4-hour chart. The RSI indicator is moving sideways in the positive area, while the MACD dropped beneath its trigger line. Both are suggesting a weak momentum in the very short-term. In case that the price remains above the Ichimoku cloud, it could visit the one-month peak of 11,339. Breaching that area, buying [..]

Technical Analysis – US 500 index’s advances under pressure

Posted on May 11, 2020 at 9:38 am GMT

US 500 stock index (Cash) is struggling to overcome the 2,935 level, that being the 61.8% Fibonacci retracement of the down leg from the all-time high of 3,396.64 until the 2,183.95 low, after acquiring some footing on the Ichimoku cloud’s upper band at 2,791. The positive tone of the Ichimoku lines and the short-term oscillators further back an advancing view. The MACD, in the positive section, is holding just above its red trigger line, while the RSI is creeping higher [..]

Technical Analysis – US 30 Cash index surpasses flat SMAs; head and shoulders in progress

Posted on May 8, 2020 at 7:15 am GMT

The US 30 Cash index appears to be forming a head and shoulders pattern in the 4-hour timeframe in a possible signal for a negative trend reversal. In the previous downfall, the price failed to slip below its previous low of 23,322 and reversed north again, surpassing the flat 50- and 100-period simple moving averages (SMAs). That said, the momentum indicators are signaling a flattening mode in the near term. The MACD seems unable to jump above its zero level as [..]

Technical Analysis – US 100 index targets 9,155 peak as bulls strengthen

Posted on May 7, 2020 at 10:38 am GMT

The US 100 stock index (cash) is recording its fourth consecutive green day thanks to the 20-day simple moving average (SMA), which managed to terminate the latest selling action. Clearing April’s high of 9,155 and further extending the uptrend is now the target as the upward-sloping RSI is currently suggesting. If that is the case, resistance could possibly run up to 9,300 and if buyers persist above that mark, the market could re-test the 9,460 barrier ahead of the 9,750 all-time high. [..]

Technical Analysis – GER 30 Cash index retains upside trend; SMAs act as strong resistance

Posted on May 5, 2020 at 1:37 pm GMT

The GER 30 index (Cash) has been making higher highs and higher lows since the mid of March when it touched the new trough of 7,950, pausing the previous downtrend in the short-term. The technical indicators continue to send weak positive signals, suggesting either a pause in the continuation of the bullish bias may be turning close to an end. The RSI is pointing up approaching the 50 level, while the MACD is hovering near the zero line, but it remains below this significant level. [..]

Technical Analysis – US 500 index stalls after fading ahead of 2,986 border

Posted on May 4, 2020 at 12:15 pm GMT

The US 500 stock index (Cash) is inactive at the 2,789 level, that being the 50.0% Fibonacci retracement of the down leg from the all-time high of 3,396.64 till the 2,183.95 low. The price appears stuck between the lower Bollinger band of 2,767 and the 100-period simple moving average (SMA) at 2,827. Turning to the short-term oscillators, the RSI and the stochastics promote advances as does the 200-period SMA, which is building an incline. Moreover, the 50- and 100-period SMAs [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.