Stock Indices Update – October, November & December 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
As suggested in our last indices chart analysis, price has reversed around 6165 and the weekly moving averages.
AUS200 is currently in a retrace phase after a strong bearish move. The weekly moving averages have crossed bearish and the ASX is below the weekly moving averages, all suggesting that price could attempt another bearish. Price action has formed a potential bearish channel.
On the daily time-frame, ASX is looking indecisive. Price action has formed a tight horizontal channel at 5775-6185 and price is moving within the channel. The daily moving averages are tight and moving sideways, confirming the market indecision.
Selling opportunities may exist around the dynamic resistance of the daily and weekly moving averages, around the weekly bearish channel resistance area and around the horizontal levels at 6090, 6185, 6375 and 7105. A bearish move could find support around the bearish channel support area and around the horizontal levels at 5775, 5455 and 4535.
DAX (German Stock Index – DE30) – Daily & Weekly Charts
Price has been finding resistance around the previous trend support area, as suggested in our last indices chart analysis.
On the weekly time-frame, DE30 has almost reversed the recent bearish move. Price is now looking indecisive and is possibly ranging between 8485 and 13805. The weekly moving averages confirm the market indecision – they are moving sideways.
The daily time-frame is showing some signs of upside momentum – price action has formed a bullish channel and the moving averages have crossed bullish.
Trading opportunities could exist around the support and resistance areas of the bullish channel, around the weekly diagonal level and around the horizontal levels at 8485, 10470, 13310 and 13805. If the DAX closes above 13805, price may attempt a bullish move higher.
IBEX 35 (Spanish Stock Index – ES35) – Daily & Weekly Charts
As suggested in our last stock index chart analysis, IBEX has been bearish and has swung lower.
Price is clearly down-trending on the weekly time-frame. ES35 is currently attempting a bearish move. The moving averages are bearish and widening, suggesting that the downside momentum could continue.
IBEX is also clearly down-trending on the daily time-frame. Price action has formed a tight bearish channel and the moving averages are bearish and steady.
Shorting opportunities may exist around the daily bearish channel resistance area, around the dynamic resistance of the daily and weekly moving averages and around any of the identified horizontal levels at 7835, 8470 and 8900. A bearish move could be rejected or reverse around the daily bearish channel support area and around the horizontal support levels at 6475, 6215 and 6020.
STOXX (European Stock Index – EU50) – Daily & Weekly Charts
Price has been indecisive but has also been slightly bearish, as suggested in our last indices analysis.
EUROSTOXX has retrace some of the recent bearish move. Price may struggle to swing lower as price recent closed above the 61.8% Fib level and the moving averages are moving sideways, all signalling market indecision rather than potential downside.
EU50 is also looking indecisive on the daily time-frame. The daily moving averages confirm the indecision – they are tight and moving sideways.
Trading opportunities could exist around the moving averages, around the daily and weekly moving averages and around the horizontal levels at 2430, 2780, 2960, 3170, 3375, 3420 and 3850.
Hang Seng 50 (Hong Kong Stock Index – HK50) – Daily & Weekly Charts
As suggested in our last stock index chart analysis, the Hang Seng has been bearish.
On the weekly time-frame, price continues to be bearish and downtrend within a large bearish channel. The weekly moving averages are bearish and steady, suggesting that the current trend could continue.
On the daily time-frame, HK50 is also bearish and down-trending. Price action has formed a tight bearish channel and the Hang Seng is moving within the channel. The daily moving averages are bearish and steady.
Opportunities to go short may exist around the dynamic resistance of the moving averages, around both bearish channel resistance areas and around the horizontal levels at 25810, 26505, 29115 and 30155. A bearish move could stall or reverse around the channel support areas and around the horizontal support levels at 22475 and 21400.
Nikkei 225 (Japanese Stock Index – JP225) – Daily & Weekly Charts
The Nikkei has been bullish.
Price continues to move within a large weekly range at 16500-24175. Both the daily and weekly moving averages have been crossing frequently and moving sideways – confirming the indecision.
Trading opportunities could exist around the support and resistance areas of the range and if the JP225 moves out of the range (break-out trade).
Trading opportunities could also exist around the weekly and daily moving averages and the horizontal levels at 21950 and 20000.
FTSE 100 (UK Stock Index – UK100) – Daily & Weekly Charts
As suggested in our last FTSE chart analysis, the UK100 has been bearish.
Price is clearly down-trending on the weekly time-frame – price action has formed a series of lower highs and lower lows. The weekly moving averages are bearish and widening, suggesting that the downside direction could continue.
The UK100 is also down-trending on the daily time-frame. Price action has formed a tight bearish channel. The daily moving averages are bearish and steady, signalling that the FTSE could see further downside.
Selling opportunities may exist around the daily bearish channel resistance area, around the weekly and daily bearish moving averages and around the horizontal levels at 6505, 6645 and 7010. A bearish move could find support around the daily bearish channel support area and around the recent lows at 4860.
Dow Jones 30 (US Stock Index – US30) – Daily & Weekly Charts
The DOW has revered around 29425, as suggested in our last indices analysis.
On the weekly time-frame, the US30 is looking indecisive. The weekly moving averages are tight and moving sideways – confirming the indecision.
On the daily time-frame, price has been bullish and has formed an uptrend. The moving averages are currently bullish and widening, suggesting that the DOW JONES may attempt to move higher.
Buying opportunities could exist around the dynamic support of the daily and weekly moving averages and around the horizontal levels at 24870, 23150, 22395 and 18315. A bullish move may find resistance around the recent highs at 29425.
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