Indices Analysis – November & December 2022


Our previous indices analysis… Click here

*High inflation and the potential of a worldwide 2023 recession are weighing on global stock markets*

*If a deep global recession crystallises, global stock markets could move much lower*

STOCK INDEX ANALYSIS: AUS200 – Down-trending. Potential indecision?

ASX Indices analysis
AUS200 Daily Chart

As suggested in our previous stock index analysis, price reversed off the longer-term and has been bearish.

The AUS200 has been down-trending but price action is starting to look sideways. Price has failed to break recent lows though, so the downtrend could becoming to an end. The moving averages are starting to move sideways and tightening, suggesting market indecision. ASX could start ranging between 6445 and 7140.

Trading opportunities may exist around the support and resistance areas of the range and if price moves out of the range (break-out trade). Selling opportunities may exist around the moving averages and around the horizontal levels at 6850, 6995 and 7275.

STOCK INDEX ANALYSIS: EU50 – Down-trending

Eurostoxx chart
EU50 Daily Chart

Price has continued to be bearish, as suggested in our previous analysis.

The EU50 is clearly down-trending – price action has formed a series of lower swing highs and lower swing lows. Price action has formed a bearish channel and is currently coming off the channel support area. The daily moving averages are bearish and steady, so the downside direction may continue.

Shorting opportunities could exist around the dynamic resistance of the moving averages, around the bearish channel resistance area and around the horizontal levels at 3655, 3810, 3850, 3910, 4015 and 4240. A bearish move may be rejected or reverse around the bearish channel support area and around the horizontal support levels at 3405 and 3275.

STOCK INDEX ANALYSIS: UK100Indecisive. Possible downtrend?

FTSE technical analysis
UK100 Daily Chart

As suggested in our last chart analysis, UK100 has been finding support around the range support area.

The FTSE is ranging between 6805 and 7660 but recent price action has been bearish and has formed a large bearish channel, so UK100 could start down-trending. The moving averages confirm the possible downside – they are bearish and steady.

Opportunities to go short may exist around the dynamic resistance of the moving averages, around the bearish channel resistance area and around the horizontal levels at 6995, 7185 and 7565. A bearish move could stall or reverse around the range support area at 6805 and the bearish channel support area.

STOCK INDEX ANALYSIS: JP225 – Ranging

Nikkei index analysis
JP225 Daily Chart

JP225 has been bearish.

Price was showing signs of a potential uptrend but price action is now sideways – the Nikkei is indecisive. JP225 is ranging between 25700 and 29100. The moving averages are tight and moving sideways, so the market indecision could continue.

Trading opportunities could 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 may find resistance around 29300, 29900 and 30600. A break to the downside may find support around 24850.

STOCK INDEX ANALYSIS: US30 – Possible downtrend?

Dow indices analysis
US30 Daily Chart

Price has been bearish.

The Dow was showing signs of possible upside but US30 has been bearish. Price action has formed a swing lower and the moving averages are bearish and steady, so price could start down-trending.

Opportunities to go short may exist around the bearish moving averages and around any of the horizontal levels at 31300, 32650, 33300, 34150 and 35300. A bearish move could find support around 29900 and 28650.

STOCK INDEX ANALYSIS: US500 – Downtrend?

indices analysis
US500 Daily Chart

The S&P500 has been bearish.

Price was showing potential upside but US500 has been bearish. Price action has formed a swing lower and the moving averages are bearish and steady, so the S&P500 may start down-trending again. The US500 is currently finding support around 3570.

Selling opportunities could exist around the dynamic resistance of the moving averages, around the previous bullish channel support area and around the horizontal levels at 3775, 3900, 4180 and 4300. Price may continue to find support around 3770.

STOCK INDEX ANALYSIS: UT100

UT100 Daily Chart

Just like other US indices, the UT100 has been bearish.

NASDAQ was showing potential upside but recent price action has been bearish. Price has formed a swing lower and the moving averages are bearish and steady, so the UT100 continue to downtrend.

Shorting opportunities may exist around the moving averages, around the bearish channel resistance area and around the horizontal levels at 11500, 1300, 13700 and 15200.

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