Indices

Technical Analysis – GER30 index rallies to 6-month high; some fragility expected in short term

Posted on April 18, 2019 at 10:06 am GMT

Germany 30 cash index (GER30) gained considerable traction after breaking the neckline (11,690) of the inverted head and shoulders pattern earlier this month, topping the rally at a six-month high of 12,194 on Wednesday. While, the RSI warns of an overbought market that could pressure the price lower in the short term, the uptrend off the 10,276 bottom may stay in place as long as the price continues to trade well above its simple moving averages (SMA). The bulls would aim for the 12,458-12,600 resistance area if the market [..]

Technical Analysis – US 30 index bulls still have control; flirts with 6-month high

Posted on April 15, 2019 at 1:18 pm GMT

The US 30 index is hovering slightly below the six-month high of 26,496, remaining well above the ‘golden cross’ between the 50- and 200-day simple moving averages (SMAs). Today, though, the index is on the backfoot and the technical indicators suggest that the market could ease a little bit in the short-term. The RSI is flattening in the positive zone, while the MACD stands below its trigger line. In case of a correction lower, preliminary support may be found near the 50-day SMA currently at 25,822 as well [..]

Q1 Earnings season: a helping hand or a hand out? – Special report

Posted on April 11, 2019 at 2:55 pm GMT

The time for the earnings season is coming again this Friday but unlike preceding releases, the S&P 500 companies are expected to have had a negative ride year-on-year in Q1 2019 for the first time since Q2 2016, with Refinitiv data suggesting a 2.5% decline in earnings per share. Another difference is that traders are feeling both nervousness and excitement as the unsurprising growth downgrade by the IMF earlier this week confirmed that something is wrong with the global economy, while in Wall Street, [..]

Technical Analysis – CHI50 stock index flies to new 1-year peak but enters overbought zone

Posted on April 10, 2019 at 9:17 am GMT

China’s 50 stock index experienced fresh buying interest after beating resistance around the 13,100 level, with the price spiking to a new one-year high of 13,917 early on Wednesday. While the RSI and the stochastics warn of an overbought market and the MACD suggests a softer trading in the short term as the indicator seems to be losing steam above its red signal line, the market needs to weaken back below 13,100 and the 20-day moving average for traders to resume cautious behavior. The [..]

Technical Analysis – US 100 index still in bullish mode, but correction may be close

Posted on April 9, 2019 at 8:37 am GMT

The US 100 index continues to print higher highs and higher lows in the daily chart, running to fresh six-month highs ahead of the all-time high around 7700. However, the technical indicators seem to be overstretched, suggesting a possible downward correction could be near. Specifically, the stochastic oscillator is hovering in the overbought zone, while the RSI has found resistance near the 70 level and is pointing down. Also, the MACD oscillator still stands above its trigger line with weaker momentum than before. It is worth [..]

Technical Analysis – EU50 index looks overbought above uptrend line; golden cross forming

Posted on April 4, 2019 at 12:50 pm GMT

The blue chip EU50 stock index restored bullish dynamics after meeting resistance at the 200-day moving average (MA) and hit a six-month high of 3,440 on Wednesday. While the RSI and the fast stochastics are warning over an overbought market, as the former is crawling above 70 and the latter is ready for a bearish cross above 80, a golden breakout between the 50- and the 200-day MAs is in progress, a sign that the recent upward pattern may extend [..]

Technical Analysis – Dollar Index futures could get more bullish in short term

Posted on April 2, 2019 at 10:46 am GMT

Following the close under the 200-day moving average (MA), the US dollar index future price (with an expiry date in June) regained considerable ground to overcome its MAs once again and return above the Ichimoku cloud, staying mostly green over the past two weeks. Technically, more upsides could be in store as the MACD keeps strengthening in the positive zone and above its red signal line, while the RSI is maintaining a steep positive slope well above its 50-neutral mark. [..]

Technical Analysis – US 500 index retains positive bias; SMAs are ready for ‘golden cross’

Posted on March 27, 2019 at 12:55 pm GMT

The US 500 stock index eased below the five-month high of 2863 but retains bullish action as it holds above the 50- and 200-day simple moving averages (SMAs) which are ready to post a ‘golden cross’. Looking at momentum oscillators in the daily chart though, they suggest upside movements may be on the cards. The RSI is above its neutral 50 line, while the stochastic reversed higher before touching the oversold zone. In case of further gains, the next resistance would likely be faced around the 2863 [..]

Technical Analysis – Dollar index pares losses but trend signals are still negative

Posted on March 21, 2019 at 10:58 am GMT

The US dollar index is paring some losses from yesterday above the 23.6% Fibonacci retracement level of the upleg from 88.10 to 97.65 and closer to the 200-day simple moving average (SMA). On Wednesday, the price dropped below the rising trend line, which had been holding since March 2018, giving negative trend signals for the near future. However, the short-term bias is tilted to the upside as the RSI indicator is turning marginally higher below its 50 level, while the stochastic oscillator is sloping up after posting a bullish crossover within the [..]

Technical Analysis – UK 100 index runs towards 5-month high; SMAs act as supports

Posted on March 20, 2019 at 2:30 pm GMT

UK 100 stock index (FTSE 100) has advanced considerably after touching the 38.2% Fibonacci retracement level of the downleg from 7900 to 6533, around 7060. During Tuesday’s session the price gained some more ground driving the market towards a fresh five-month high of 7350. The flatly aligned Tenkan- and Kijun-sen lines are indicative of a possible weaker momentum than before. However, the MACD oscillator is heading north. If the price manages more bullish actions and surpasses the five-month high, immediate resistance would come from the 61.8% Fibonacci level, [..]

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