Indices Update – April, May & June 2020


***Coronavirus fears are driving markets – cash fleeing to safe-haven currencies (CHF, JPY, USD). Stock markets down***

 

ASX 200 (Australian Stock Index – AUS200) – Daily & Weekly Charts

 

As suggested in our last indices update, price broke to the upside of the range resistance area and was then bullish. The ASX has since been bearish though, all driven by the negative economic impact caused by COVID-19. Price has swung below a number of key support areas, suggesting that AUS200 has become a bearish market. Recent price action has been finding support around 4537 and is currently forming a retrace move. The daily moving averages have crossed bearish and are starting to widen, suggesting downside momentum.

Selling opportunities may exist around any of the key Fib levels, around the daily and weekly moving averages and around any of the horizontal levels at 5450, 6103, 6397, 6497 and 6605. ASX could continue to find support around the recent lows at 4537.

 

DAX (German Stock Index – DE30) – Daily & Weekly Charts

 

The DAX continued to be bullish and found resistance around the bullish channel resistance area (as suggested in our last indices update). Price has since been bearish though, all driven by the negative economic impact caused by COVID-19. DE30 has moved below a number of key support levels, signalling that this European index has entered a bearish market. Price has been finding support around 8460 and is currently in a retrace move. The daily moving averages are becoming bearish, suggesting that the DAX may attempt to swing lower.

Shorting opportunities could exist around any of the key Fib levels, around the moving averages and around any of the horizontal levels at 10362, 10470, 11264, 11557 and 11807. An attempt to swing lower may stall or reverse around the recent lows at 8460.

 

IBEX 35 (Spanish Stock Index – ES35) – Daily & Weekly Charts

 

As suggested in our last indices update, ES35 reversed around the shorter-term moving average and the bullish channel support area. Price then found resistance around the channel resistance area (as also suggested). Just like other indices, IBEX has been very bearish, driven by the negative economic impact caused by COVID-19. Price has cleared entered a bearish market. ES35 is currently in a retrace phase. The moving averages have crossed bearish, signalling that price could attempt to swing lower.

Opportunities to go short may exist around any of the key Fib levels, around the moving averages and around the previous horizontal support levels at 8340, 8471 and 8591. An attempt to swing lower could find support or fail around the recent swing low at 6025.

 

STOXX (European Stock Index – EU50) – Daily & Weekly Charts

 

Price reversed around the horizontal support at 3626 and then swung higher (as suggested in our last indices update). STOXX has since been very bearish, just like it’s European counterparts – all driven by the negative economic impact caused by COVID-19. Key support levels have been broken, suggesting a bearish market. Just like other stock indices, the EU50 is currently retracing some of the recent sell-off.

Selling opportunities could exist around any of the key Fib levels, around the moving averages and around any of the previous support levels at 2935, 2960, 3259, 3412 and 3650. Price may be rejected or reverse around the recent lows at 2387.

 

Hang Seng 50 (Hong Kong Stock Index – HK50) – Daily & Weekly Charts

 

The Hang Seng has finally moved out of it’s sideways market (range). Price has been bearish – driven by the negative economic impact caused by COVID-19. The HK50 is below the recent consolidation area and price action has formed a series of lower swing highs on the weekly time-frame – the Hang Seng is down-trending. The daily moving averages confirm this – they have crossed bearish and are widening.

Opportunities to go short may exist around the moving averages, around the weekly trend resistance area and around any of the horizontal levels at 24553, 24828, 25373, 25875 and 27915. An attempt to swing lower could stall or reverse around the recent swing low at 21410.

 

Nikkei 225 (Japanese Stock Index – JP225) – Daily & Weekly Charts

 

As suggested in our last indices update, the Nikkei reversed around the shorter-term moving average. Price has been bearish, just like other global stock indices. JP225 has swung below a number of key support areas and the moving averages are becoming bearish, all suggesting that price may start down-trending. Price is below the recent weekly consolidation area, adding confidence that the Nikkei has entered a bearish market. Price is currently in a retrace move.

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 19788, 19980 and 22609. A bearish move may find support around the recent swing low at 16087.

 

FTSE 100 (UK Stock Index – UK100) – Daily & Weekly Charts

 

UK100 reversed around the range resistance area at 7693 (as suggested in our last indices analysis). Price has since been extremely bearish. The FTSE is now in a retrace move but price action suggests that the UK100 could swing lower – price is below key support levels and below the recent consolidation area. The moving averages confirm the potential downside – they are bearish and widening.

Selling opportunities may exist around any of the key Fib levels, around the moving averages and around the previous horizontal support levels at 6578 and 6654. A bearish move could find support around 4863.

 

Dow Jones 30 (US Stock Index – US30) – Daily & Weekly Charts

 

As suggested in our last indices update, price found support around the shorter-term moving average and trend support area. US30 has since been very bearish though – all driven by the negative economic impact caused by COVID-19. Just like other stock indices, the DOW has entered a potential bearish market and may start down-trending.

Opportunities to go short could exist around the dynamic resistance of the moving averages, around any of the key Fib levels and around the horizontal levels at 22416, 24626 and 25069. A bearish move may find support around 18214.

 

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