Indices

Technical Analysis – US 30 index stands above ‘golden cross’; indicators signal weakness

Posted on March 18, 2019 at 12:32 pm GMT

The US 30 index recorded a bullish signal in the previous week, completing a golden cross within the 50- and the 200-simple moving averages (SMAs) in the daily timeframe. 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 stochastic oscillator is ready for a bearish cross in the overbought zone, while the MACD remains below trigger line. In case of a correction lower, preliminary support may [..]

Technical Analysis – CHI50 index loses 6% after 1-year highs; sell-off could pause soon

Posted on March 8, 2019 at 1:05 pm GMT

China 50 stock index plunged by more than 6% in the latest two trading sessions after topping at a one-year high of 13,294 on March 4, recording its biggest daily losses since late October. The RSI has left its overbought zone above 70 and returned to 50, while the MACD slipped below its red signal line, confirming the recent bearish correction. In Ichimoku indicators, though, the red Tenkan-sen line predicts a more positive short-term picture as the index maintains a steep [..]

Technical Analysis – GER30 index finds resistance at the neckline of the inverted head and shoulders pattern

Posted on March 7, 2019 at 12:43 pm GMT

German 30 stock index (DAX 30) stretched above the June downtrend line but was unable to pierce the 11,690 neckline of the inverted head (10,276) and shoulders (11,000) pattern this week, with the price correcting lower instead. The technical indicators suggest a neutral bias for the short term at the moment as the RSI is heading towards its 50 neutral mark and the MACD is moving around its red signal line. The risk, however, could turn to bearish if the former [..]

Technical Analysis – US 500 index challenges significant obstacle near 2812; holds above 200-day SMA

Posted on March 4, 2019 at 12:59 pm GMT

The US 500 stock index jumped above the 2812 strong barrier, which had been holding since December 3, pointing for more bullish pressures in the near term. Prices hit an almost five-month high of 2819 earlier today, however, the technical indicators seem to be overbought. The MACD is trying to recover somewhat below trigger line, while the RSI is flattening near 70 level. In case of further gains the next resistance would likely be faced around the 2863 barrier, taken [..]

Technical Analysis – US 30 index completes in new 3-month high; momentum indicators look overbought

Posted on February 25, 2019 at 1:04 pm GMT

The US 30 index has been in a flying mode, recording a new three-month high of 26,179 after the rebound on the 16-month low of 21,596 on December 26, successfully surpassing the 50- and 200-simple moving averages (SMAs) in the daily timeframe. This implies that the short-term picture remains positive, albeit cautiously so, with a break above the all-time high of 26,951 needed to confirm that the bulls are in full control. However, the technical indicators are holding in overbought [..]

Technical Analysis – US 100 index still positive, but correction may be looming

Posted on February 21, 2019 at 4:01 pm GMT

The US 100 index continues to print higher lows and higher highs on the daily chart, after it bottomed on December 26. The short-term picture thus remains somewhat positive, though the inability of the bulls to pierce above the 200-day simple moving average (SMA) is worrisome and suggests some cause for caution. Indeed, short-term oscillators also imply a pullback may be on the cards in the immediate term, as the RSI found resistance near 70 and is pointing lower, while [..]

Technical Analysis – EU50 stock index bulls look exhausted below descending line

Posted on February 21, 2019 at 3:29 pm GMT

The blue chip EU50 stock index has impressively improved since the start of the year, adding 10% to its value to reach four month highs.The market is currently testing the previous peak of 3,263 and the downward trendline drawn from the top of July 2018 at 3,535 but the RSI is close to its 70 overbought mark suggesting that the rally is overdone. A failure to break the downward pattern could see prices falling into the 3,214-3,192 area, encapsulated by the high on [..]

Technical Analysis – Japan 225 stock index stands tall at 9-week highs

Posted on February 21, 2019 at 1:52 pm GMT

Japan’s 225 stock index has staged a 5% rise over the past two weeks to jump above the Ichimoku cloud and reach a nine-week high of 21,554 today. The MACD keeps stretching higher and above its red signal line, spreading hopes that there are more gains in store. The RSI is also in bullish territory (above 50) but seems to be losing steam, a sign that caution may soon return to the market. If the rally continues, the 50% Fibonacci of 21,847 [..]

Technical Analysis – Dollar index reverses up in sideways channel; neutral in medium term

Posted on February 21, 2019 at 10:14 am GMT

The dollar index found strong resistance around the 97.20 obstacle, driving the price lower. Currently, the price has been developing in a sideways channel over the past five months with upper boundary the 97.50 resistance and lower boundary the 94.60 support. Chances for a reversal in the short-term are increasing as the price failed to drop beneath the 50-day simple moving average (SMA). The short-term bias looks positive as the RSI indicator keeps gaining ground above its 50 level, while the stochastic oscillator is [..]

Technical Analysis – UK 100 index retreats from 4-month high; bullish in near term

Posted on February 20, 2019 at 2:24 pm GMT

UK 100 stock index (FTSE 100) has declined considerably after touching the four-month high of 7265 on February 15. During Thursday’s trading, the price has gained some ground, while it is currently not far below the 50.0% Fibonacci retracement level of the downleg from 7900 to 6533, near 7220. The flatly aligned Tenkan- and Kijun-sen lines are indicative of a possible bearish correction, signaling a potentially oversold market. The MACD and the stochastic oscillators are heading south as well. Should bearish dynamics dominate, the market might revisit [..]

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