TriumphFX Indices Analysis – Where could stock markets go from here?


*** Coronavirus fears are driving stock markets. Recession concerns, interest rate cuts and a drop in Oil prices are causing market volatility ***

 

ASX 200 (Australian Stock Index – AUS200)

 

Price is clearly down-trending. The moving averages are bearish and widening, suggesting that the downside momentum could continue. AUS200 recently reversed off a key higher time-frame support at 5414.

Selling opportunities may exist around the dynamic resistance of the moving averages and around the horizontal levels at 6009, 6249 and 6511. A bearish move could stall or reverse around the key support area at 5414. If price closes below the higher time-frame support, AUS200 could attempt a bearish move lower.

 

DAX (German Stock Index – DE30)

 

The DAX is clearly down-trending and has been moving lower. The moving averages suggest that the downtrend may continue – they are bearish and widening. Price has stalled at a key higher time-frame support around 10362. The DAX is now ranging between 10362 and 11003.

Trading opportunities could exist around the support and resistance areas of the range and if price closes out of the range (break-out trade). A break to the upside may be rejected or reverse around the moving averages and around the horizontal levels at 11636 and 12283. A break to the downside may signal a bearish move lower and a continuation of the current downtrend.

 

STOXX (European Stock Index – EU50)

 

Just like all other stock indices, STOXX has been bearish and is down-trending. Unlike other indices though, STOXX has closed below a key higher time-frame support, signalling that the bearish direction could continue. Price is currently ranging though at 2872-3081. The moving averages confirm the potential further downside – they are bearish and widening.

Shorting opportunities may exist around the range resistance area, around the dynamic resistance of the moving averages and around the horizontal levels at 3255 and 3461. An attempt to swing lower could find support around the range support area (2872).

 

Hang Seng 50 (Hong Kong Stock Index – HK50)

 

Price is down-trending. The bearish moves have not been as aggressive as other global indices, suggesting that the Hang Seng may be less prone to bearish volatility – a safer asset for investment. The moving averages signal further downside though – they are bearish and widening. Price recently reversed around a key higher time-frame support at 24559.

Opportunities to go short could exist around the bearish moving averages, around the trend resistance area and around the horizontal levels at 25673 and 26798. A bearish move may continue to find support and even reverse around 24559.

 

Nikkei 225 (Japanese Stock Index – JP225)

 

The Nikkei has been down-trending, just like other global stock indices. The moving averages are bearish and steady, signalling that the bearish momentum could continue. Price has been finding support around a key higher time-frame support at 19178 though.

Selling opportunities may exist around the bearish moving averages, around the trend resistance area and around the horizontal levels at 20087, 20525, 21671, 22003 and 22688. The Nikkei could continue to find support around the key support around 19178. Price could even attempt a bullish reversal around that area.

 

FTSE 100 (UK Stock Index – UK100)

 

FTSE has been down-trending. The bearish moves have been aggressive and volatile, just like other European and US stock indices. Price has closed below some key higher time-frame support levels, signalling that the FTSE may struggle to move higher. The moving averages confirm this – they are bearish and widening.

Shorting opportunities could exist around the dynamic resistance of the moving averages, around any of the key Fib levels and around the horizontal levels at 6209, 6484 and 6682. A bearish move may find support around the recent lows at 5807.

 

Dow Jones 30 (US Stock Index – US30)

 

Price has been down-trending but is now ranging between the recent lows at 23765 and 25037. The moving averages are bearish and widening, suggesting that US30 could move lower.

Trading opportunities may exist around the support and resistance areas of the range and if price moves out of the range (break-out trade). A break to the upside could find resistance around the moving averages and horizontal resistance at 27086. A break to the downside could signal a continuation of the current downtrend.