Stock Indices Update – July, August & September 2020


*** 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) – Daily & Weekly Charts

AUS200 Weekly Chart
AUS200 Daily Chart

As suggested in our last indices analysis, ASX has been finding resistance around the 61.8% Fib level.

Price action recently formed a strong bearish move and is currently in a retrace phase. On the weekly time-frame, the AUS200 is around the 61.8% Fib level. Price has formed a clear lower swing low and is not forming higher swing highs, suggesting that ASX may start down-trending.

On the daily time-frame, price has been recently up-trending. The moving averages have crossed bullish and are widening, signalling that the upside direction may continue.

Opportunities to go short could exist around the 61.8% Fib level, around the weekly moving averages and around any of the horizontal levels at 6165, 6395, 6500, 6605 and 7110. A bearish move may be rejected or reverse around the daily moving average and around the horizontal support levels at 5455 and 4535.

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

DE30 Weekly Chart
DE30 Daily Chart

The DAX has found resistance around the previous bullish channel support area (as identified in our last indices analysis).

Price has almost reversed the recent sell-off. On the weekly chart, DE30 is now looking a little indecisive. The weekly moving averages confirm the market indecision – they are tight and moving sideways.

DE30 has been forming higher swing highs and higher swing lows on the daily chart – price is up-trending. The moving averages have been crossing frequently and are moving sideways though, suggesting market indecision.

Trading opportunities may exist around the daily and weekly moving averages, around the diagonal support and resistance area and around the horizontal levels at 8485, 10470 and 13805.

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

ES35 Weekly Chart
ES35 Daily Chart

As suggested in our last indices chart analysis, price has reversed around the 50.0% Fib level.

The ES35 is currently in a retrace phase, after a clear bearish move. Price has not recovered as strongly as other global indices, suggesting that IBEX may attempt another bearish move.

On the daily chart, price is up-trending within a bullish channel. The moving averages are bearish and widening, suggesting that the ES35 may become bearish.

Shorting opportunities could exist around the daily channel resistance area, around the dynamic resistance of the daily and weekly moving averages and around the previous horizontal support levels at 7950 and 8470. A bearish move may find support around the channel support area and around the horizontal support levels at 6490 and 6035.

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

EU50 Weekly Chart
EU50 Daily Chart

Price has been bullish and has swung above all key Fib levels.

Eurostoxx has moved above a number of key resistance areas, suggesting that the potential downtrend is over. The weekly moving averages are moving sideways, signalling indecision.

The daily time-frame shows a clear bullish channel. The moving averages are bearish and widening though, suggesting that price could attempt a bearish move.

Trading opportunities may exist around the support and resistance areas of the daily bullish channel, around the daily and weekly moving averages and around the identified horizontal levels at 2430, 2775 and 3850.

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

HK50 Weekly Chart
HK50 Daily Chart

As suggested in our last stock indices analysis, HK50 found resistance around the previous horizontal support area at 24828.

Price has since moved higher. On the weekly time-frame, the Hang Seng is clearly down-trending. Price is currently in a retrace phase. Price action has formed a bearish channel. The moving averages are bearish and steady, suggesting that the downtrend may continue.

On the daily, HK50 has been bullish and has formed a bullish channel (just like other global stock indices). The moving averages are bearish and widening, suggesting price may move lower.

Selling opportunities could exist around the daily bullish channel resistance area, around the weekly bearish channel resistance area, around the weekly moving averages and around the horizontal resistance levels at 29115 and 30155. A bearish move may stall or reverse around the channel support areas, around the daily shorter-term moving average and around the horizontal levels at 24815, 22490 and 21400.

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

JP225 Weekly Chart
JP225 Daily Chart

Price has been bullish and has almost reversed the recent bearish move.

The Nikkei is now looking indecisive. The weekly moving averages confirm the current indecision – they are tight and are moving sideways. JP255 could start ranging between the recent lows at 16515 and the horizontal resistance at 24165.

JP225 is clearly ranging and indecisive on the daily time-frame also. The daily moving averages have been crossing frequently and are moving sideways – confirming the market indecision.

Trading opportunities may exist around the support and resistance areas of the range and if price closes out of the range (break-out trade).

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

UK100 Weekly Chart
UK100 Daily Chart

The FTSE100 is currently in a retrace phase.

On the weekly time-frame, price is struggling to fully reverse the recent sell-off and the weekly moving averages are bearish and steady, suggesting that price may attempt to swing lower.

The daily time-frame confirms the weekly downtrend – bearish moving averages and lower swing highs and lows.

Opportunities to go short could exist around the bearish moving averages on both the daily and weekly time-frames, around the 61.8% Fib level, around the trend resistance area and around the horizontal levels at 6505, 6645, 7010, 7075 and 7820. A bearish move may find support around the recent lows at 4860.

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

US30 Weekly Chart

US30 has been bullish and has swung above all key Fib levels.

Price has swung above a number of key resistance areas, suggesting that the potential downtrend is over. The weekly moving averages are moving sideways, signalling indecision. The Dow Jones could start ranging between 18315 and 29425.

The daily time-frame shows clear higher swing highs and higher swing lows. The moving averages are starting to move sideways though, suggesting that price could become indecisive.

Trading opportunities may exist around the daily and weekly moving averages, around the horizontal level at 22395 and around the support and resistance areas of the range.

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