Indices, where could they go from here? Indices update February 2019

ASX 200 (Australian Stock Index – AUS200)

The ASX has recently broken the bearish trend resistance and has since been retracing the recent sell-off. The moving averages are starting to tighten and are moving sideways, suggesting market indecision. Price action is moving between a number of horizontal support and resistance levels – confirming the current indecision. Trading opportunities could exist around the moving averages and around the identified horizontal levels at 5586, 5709, 5935, 6142, 6210 and 6371. If the ASX closes above the highs at 6371, price may attempt a bullish move higher.

DAX (German Stock Index – DE30)

Price is down-trending within a bearish channel. The moving averages are bearish and widening, signalling that the selling momentum could continue. Fears of a German recession could be the driving force behind future downside pressure. Opportunities to go short may exist around any of the key Fib levels, around the dynamic resistance of the moving averages, around the bearish channel resistance area and around the horizontal levels at 11790 and 12163. A bearish move could be rejected or reverse around the recent lows at 10374 and around the bearish channel support area.

IBEX 35 (Spanish Stock Index – ES35)

The IBEX is down-trending within a bearish channel. The moving averages are bearish and steady, suggesting that the downtrend may continue. Shorting opportunities could exist around the moving averages, around the bearish channel resistance area and around the horizontal levels at 9219, 9356, 9480, 9663 and 9956. An attempt to move lower may stall or reverse around 8628 and 8340. Price action is forming an inverted head and shoulder reversal pattern, signalling that the IBEX may attempt a bullish move.

STOXX (European Stock Index – EU50)

Just like other European indices, the STOXX is bearish. Price is down-trending. The moving averages suggest that the downside direction could continue – they are bearish and widening. Selling opportunities may exist around the longer-term moving average, around the trend resistance area and around the horizontal levels at 3265, 3348 and 3587. A bearish move could be rejected or reverse around the horizontal support levels at 3103 and 2935. Price action could be forming an inverted head and shoulder reversal pattern, suggesting that STOXX could attempt a bullish move.

Hang Seng 50 (Hong Kong Stock Index – HK50)

The Hang Seng has been down-trending. Price has recently formed a double-bottom reversal pattern though and is currently above both moving averages, all signalling that the Hang Seng may start up-trending. Opportunities to go long could exist around the moving averages, around the previous trend resistance (as support) and around the horizontal levels at 27092, 24904 and 24554. A bullish move may stall or reverse around 29385, 31713 and 33288. If US-China trade wars escalate, price may attempt a move lower.

Nikkei 225 (Japanese Stock Index – JP225)

Price has been bullish and has swung above the recent trend resistance area. The moving averages are bearish and widening though, suggesting that the Nikkei could continue to downtrend. At this point, it is uncertain where price could go – potential indecision. Trading opportunities may exist around the previous trend resistance area (as support), around the moving averages and around the horizontal levels at 19163, 20367, 21023, 21603, 23022, 24086 and 24377.

FTSE 100 (UK Stock Index – UK100)

The FTSE is recovering from the recent sell-off – price is in a retrace phase. The moving averages are moving sideways, signalling indecision. Trading opportunities could exist around the moving averages and around the horizontal levels at 6583, 6866, 7176, 7264, 7778 and 7863.

Dow Jones 30 (US Stock Index – US30)

Just like the FTSE, the DOW has been bullish and is retracing recent losses. The moving averages have been crossing frequently and are moving sideways, suggesting market indecision. Trading opportunities may exist around the moving averages and around the horizontal levels at 21703, 23598, 24173, 25354, 25769, 26184 and 26802. If the DOW closes above 26802, price could attempt a bullish move higher.

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