Resistance – 6200, 6244, 6311
Support – 6119, 6050, 6000
FTSE’s rebound from 6119 (38.2% of Apr 2015 high-Feb 2016 low) if followed by a day end closing today above daily 200-SMA of 6149 would signal short-term bearish invalidation and open doors for a rise to 6208 (23.6% of Feb low-Apr high).
On the lower side, rejection at daily 200-SMA followed by...
Chart describes relationship with Federal Funds Rate X Federal Reserve US Bond Holdings vs. S&P 500
Increasingly throughout the years markets behavior has been dictated by actions of US Central Bank Federal Reserve.
Following actions and words of Federal Reserve officials have been important elements in forecasting overall market behavior and direction.
Resistance – 17,539, 17,688, 17,811
Support – 17,399, 17,311, 174,149
Given the uptick in the European stocks and US index futures, Dow index could open on a positive note around 17,480-17,500 levels.
As long as resistance at 17,539 (23.6% of Feb low-Apr high) – 17,547 (daily 50-SMA) isn’t breached, the bears are likely to remain control.
On...
The index is likely to open higher around 6090 levels, given the positive action seen in the index futures.
Failure to take out daily 5-SMA level of 6118 levels could trigger a fall back to 6073 levels (38.2% of Feb low-Apr high).
However, only a break below head and shoulder neckline level of 6052 would signal continuation of retreat from 6215 levels.
...
Resistance – 14,538, 17,622, 17,755
Support – 17,399, 17,366, 17,149
Day end closing below head and shoulder neckline and 17,538 (23.6% of 15501-18167) on Wednesday following hawkish Fed minutes has kept the doors open for a drop towards support levels at 17,366 and 17,149 levels.
Daily RSI, at 43, stays in favor of further decline. However,...
Support - 6072, 6050, 6036.70
Resistance - 6100, 6155, 6180
Upbeat UK data did little to help FTSE avoid/reverse losses as markets are focused on the possibility of Fed rate hike in June.
A break below 6072 (daily 100-SMA and 38.2% of Feb low - Apr high) would expose head and shoulder neckline level around 6050.
A day end closing below 6050 could...
DAX's failure to take out 10,108.25 (38.2% of Oct high-Feb low) throughout last week and yesterday, which also marked a failure to take out falling trend line resistance and rising trend line resistance has reinforced bears.
A day end closing below 9796 (38.2% of Feb low-Apr high) would add credence to bearish developments mentioned above and open doors for a...
The daily chart shows a head and shoulder formation could be in the making with neckline support at 6054 levels.
Bears should watch out for a rebound followed by a break above daily high of 6167 as that could yield a rise above 6237 levels, which if breached on day end closing would negate the possibility if a head and shoulder formation.
Spotting technical patterns felt like a curse yesterday as most analysts including yours truly was expecting bearish action given Friday's head and shoulder breakout. The index rallied 17,755 levels.
However, prices fell today below the head and shoulder neckline level of 17,5607 levels.
Outlook - Daily close below neckline level today would reinforce bears and...
If we dissect the right shoulder of the bigger head and shoulder seen on the daily chart via hourly chart, we see a head and shoulder breakout!
It has been breached on Friday and the prices are now trading slightly above the neckline seen around 17,590.
One may be compelled to think the bearish break has failed since prices are back above neckline...however,...
Dow has confirmed head and shoulder breakout on Friday..however, S&P is yet to do so on daily closing basis, Watch out for a day end closing below 2046.61 (neckline) level today as that would add credence to bearish break in Dow
Dow Jones closed just below 17,538 levels (23.6% of Feb low – April high) and also confirmed head and shoulder breakout. The neckline, now resistance, stands at 17,606 levels.
Bearish invalidation is seen only if there is a day end close above neckline, while buying interest would spike if prices close above May 10 high
Resistance – 6161, 6200, 6237
Support – 6077, 6036.70, 6000
FTSE finds itself stuck between a range marked by daily 200-SMA and daily 100-SMA.
Prices have failed to see a daily close above/below the respective average levels since 5th May.
The said range today is 6161-6077. The lower end of the range almost coincides with 38.2% of Feb low –...
Resistance – 6100, 6163, 6200
Support – 6061, 6036.70, 6000
FTSE’s failure to take out weekly 200-MA in late April followed by a sell-off and drop below daily 200-SMA restricted the buying interest this week.
We also saw a failure to take out daily 200-SMA hurdle yesterday followed by a bearish move today. The entire price action suggests bears are...
Drop from yesterday's high if followed by a daily closing below rising trend line would signal that retreat from Apr 21 high has resumed. In such a case, support at 325.40 (May 6 low) stands exposed. A violation there would expose 320 levels.
On the higher side, only a daily close above daily 50-SMA line would increase odds of a fresh rally towards 347.60 levels.
Failure to take out 200-SMA for the second consecutive day if followed by a break below today’s low of 6114.81 by day end could result in a drop to daily 100-SMA of 6082.32. A day end closing below 6082.32 could spell trouble for bulls.
On the higher side, 200-SMA remains a strong resistance, where a violation could yield 6232 levels.
