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Dow Jones, S&P 500, DAX 30, and FTSE 100Technical Forecast

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Dow Jones, S&P 500, DAX 30, and FTSE 100Technical Forecast:

  • The S&P 500 and Dow Jones tread water above nearby resistance as bulls set their sight on new all-time highs
  • The DAX 30 finds itself comfortably within its upward channel from January
  • The FTSE 100 rests narrowly beneath resistance from mid-February

Dow Jones Technical Forecast: Bullish

The Dow Jones gapped higher on Friday as a notable component of the Industrial Average – Disney – soared to all-time highs. With a daily close above the recent band of resistance at 26,295, the index should now look to use the level as support. Beneath that lies a support trendline from October that recently acted as the topside of a wedge from February to its break on April 1.

Learn the differences between the Dow Jones and S&P 500 and how they might contribute to different outlooks.

With considerable support beneath the index, the topside shows promise. Apart from the swing high on April 5 at 26,490, immediate resistance is less clear. That said, 26,773 – September’s high – should offer some resistance before the Average tests record highs at 26,942.

Dow Jones Price Chart: 4-Hour Time Frame (January 2019 to April 2019) (Chart 1)

Dow Jones

How to day-trade the Dow Jones

S&P 500 Technical Forecast: Bullish

Similarly, the S&P 500 gapped higher at Friday’s open on positive earnings from JP Morgan, Wells Fargo and PNC Bank. In turn, the index ran to topside a resistance trendline dating to December 24. Price action has been wrapping around the line like a vine, suggesting it still holds some sway. It will pose the first top-side barrier for a move higher in the week ahead.

Beyond that, horizontal resistance at 2,916 – September’s high – is another risk to a move higher. Should both topside levels be beaten, the final hurdle is the index’s record high at 2,942. As far as support is concerned, the S&P 500 has ample. Prior resistance at 2,870 from the high in February 2018 should now offer buoyancy on an attempted move lower, followed by March’s high at 2,860.

S&P 500 Price Chart: 4 – Hour Time Frame (January 2019 – April 2019) (Chart 2)

SP500

DAX 30 Technical Forecast: Neutral

The German DAX 30 finds itself on the topside of its upward channel from January. Given the positioning of the index within its channel, and its stellar run-up two weeks ago, consolidation or a minor retracement may be needed before another topside test is attempted.

The channel’s upper bound appears to be the sole resistance, with the index’s current price marking the high during a period of consolidation amidst October’s rout. Should the index open above 12,000 on Monday, the level could offer some buoyancy during the week. 11,841 marks another October high and lies in an open gap from two weeks ago. In the week ahead, it should provide some support if it is tested before the lower-bound of the channel.

DAX 30 Price Chart: 4 – Hour Time Frame (December 2018 – March 2019) (Chart 3)

Dax

DAX day-trading strategies

FTSE 100 Technical Forecast:Neutral

The FTSE 100 closed Friday’s session slightly beneath trendline resistance from mid-February. Although the line has been broken in prior sessions, it provided clear-cut resistance during Thursday and Friday trading which suggests it should continue to do so next week. It will be the first barrier to a topside move.

For support, the index will rely on the 61.8% Fib level at 7,382. Beneath that lies a support trendline from December 24 lows which has not been broken since its inception. Like the DAX, the FTSE may look to consolidate above the 61.8% Fib level before another test at topside resistance. A daily close above the line would see it act as support as the week progresses. For more equity technical levels, follow @PeterHanksFX on Twitter.

Looking for a fundamental perspective on equity? Check out the Weekly Equity Fundamental Forecast.

FTSE 100 Price Chart: 4 – Hour Time Frame (June 2018 – March 2019) (Chart 4)

Please add a description for the image.

–Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

DailyFX forecasts on a variety of currencies such as the Pound or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

Other Weekly Technical Forecast:

Australian Forecast– AUDUSD Flirts with 200 Day Moving Average, AUDJPY Earns Strong Break

Crude Oil Forecast – Will Pres. Trump Tweet at $65?

Sterling Forecast – GBPUSD, EURGBP and GBPJPY

US Dollar Forecast – USD Searches for Direction Amidst Wedge

Gold Forecast – XAU Doji Threatens Deeper Losses

Euro Forecast – EUR/USD Attracts Bears, But Price Momentum May Reverse Higher



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Weekly Trade Levels for US Dollar, Euro, Sterling, Loonie, Gold & Oil

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New to Forex Trading? Get started with this Free Beginners Guide

DXY, Euro, Loonie Monthly Opening-Ranges Intact

The US Dollar Index is trading into the monthly opening-range highs into the start of the week and the focus is a reaction around the 98.05/10 resistance zone- note that the monthly ranges in Euro and Loonie also remain intact. In this webinar we review updated technical setups on DXY, EUR/USD, USD/CAD, GBP/USD, Crude Oil (WTI), Gold, USD/JPY, AUD/USD, EUR/AUD & SPX.

Why does the average trader lose? Avoid these Mistakes in your trading

Key Trade Levels in Focus

DXY – Immediate focus is on topside resistance at 98.05/10. Initial support at 97.87 with near-term bullish invalidation raised to 97.71.

EUR/USD – Euro is coiling into the monthly opening-range just above slope support. Immediate focus is on support at 1.1140. Initial resistance at 1.1187 with near-term bearish invalidation at monthly-open resistance at 1.1215– look for a bigger reaction there IF reached. A break lower would expose 1.1110.

GBP/USD – Sterling broke below multi-month slope support last week with price responding to near-term pitchfork support into the open. Initial resistance at 1.2798 with bearish invalidation at 1.2859. Downside support objectives at the August low-day close at 1.2697 and the 100% extension at 1.2662.

Gold – Risk for near-term recovery while above the yearly / monthly low-day close at 1270. Initial resistance at 1280 with near-term bearish invalidation with the monthly open a 1283.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Key Event Risk This Week

Economic Calendar- Key Data Realeses

Economic Calendar – latest economic developments and upcoming event risk

Active Trade Setups:

Learn how to Trade with Confidence in our Free Trading Guide

—Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex



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AUDUSD Soars on Shock Election, Apple Shares Slump, Risk of S&P 500 Drop

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MARKET DEVELOPMENT – AUD Soars on Shock Election, Apple Shares Slump, Risk to S&P 500

DailyFX Q2 2019 FX Trading Forecasts

AUD: The Aussie outperforms following a shock election outcome, in which Prime Minister Scott Morrison secured re-election (full story). In reaction, the Aussie gapped higher at the Asia open, reclaiming the 0.69 handle against the greenback. However, as equity markets have headed lower throughout the European morning, risks are for gains to be faded. Alongside this, key headwinds in the form of trade war tensions and a potential RBA June rate cut are likely to limit upside. Reminder, RBA Governor Lowe due to speak tonight after RBA meeting minutes (calendar)

Crude Oil: Oil prices surged at the Asia open as Saudi Arabia signalled that cuts could be extended throughout the remainder of 2019 at the JMMC meeting, while President Trump had also stepped up his critical rhetoric towards Iran. Although, with equity prices beginning to push lower, oil prices have pared the majority of its initial gains.

Equities: US equity futures have headed lower amid the continued crackdown by the US on China’s Huawei, which in turn has chipmakers come under pressure, while Google also stated that they are to restrict the company’s use on android services. Elsewhere, Apple’s price target had been cut by HSBC to $174 (median street price target = $220), citing concerns over China, while tariff led price increases on Apple products could also have dire consequences on demand. Apple shares currently lower by 2.4% in pre-market.

AUDUSD Soars on Shock Election, Apple Shares Slump, Risk of S&P 500 Drop - US Market Open

Source: DailyFX, Thomson Reuters

DailyFX Economic Calendar: – North American Releases

AUDUSD Soars on Shock Election, Apple Shares Slump, Risk of S&P 500 Drop - US Market Open

IG Client Sentiment

AUDUSD Soars on Shock Election, Apple Shares Slump, Risk of S&P 500 Drop - US Market Open

How to use IG Client Sentiment to Improve Your Trading

WHAT’S DRIVING MARKETS TODAY

  1. Gold Price Sell-Off Continues, Silver Price Hits a Six-Month Low” by Nick Cawley, Market Analyst
  2. COT Report: Japanese Yen and Euro Shorts Collapse, USD Longs Reduced” by Justin McQueen, Market Analyst
  3. Crude Oil Price May Be Carving Out a Top” by Paul Robinson, Currency Strategist
  4. Using FX To Effectively Trade Global Market Themes at IG” by Tyler Yell, CMT , Forex Trading Instructor

— Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX



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Gold Price Sell-Off Continues, Silver Price Hits a Six-Month Low

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Gold (XAU) and Silver (XAG) Price Analysis and Charts.

  • Gold (XAU) eyes a cluster of support.
  • Silver (XAG) makes afresh 2019 low as buyers disappear.

DailyFX Q2 Forecasts and Top 2019 Trading Opportunities.

Gold (XAU) Needs to Support to Hold

The sell-off on gold continues with the precious metal down around $30 in less than a week. Gold is under pressure from a resurgent US dollar, buoyed by last Friday’s Uni of Michigan data which smashed expectations and hit a multi-year high. The important 61.8% Fibonacci retracement level at $1,287/oz. failed to provide any support when broken last week, while the $1,287 – $1,281/oz. zone made up of old horizontal support is being tested now. A clear break and close below opens the way to the recent double bottom around $1,266/oz. which is currently being guarded by the 200-day moving average at $1,268.6/oz. Below here the 50% Fibonacci retracement level at $1,262/oz heaves into view.

How to Trade Gold: Top Gold Trading Strategies and Tips

Gold (XAU) Daily Price Chart (August 2018 – May 20, 2019)

Gold Price Sell-Off Continues, Silver Price Hits a Six-Month Low

Silver (XAG) Nears a Fresh Six-Month Low

Another precious metal under heavy selling pressure. Silver is now at levels last seen in early December last year and is over 11% lower since making its recent high of $16.21/oz. in late February. The downtrend since the late-February high continues to be respected and it is possible that silver completely retraces all the way back down to the November 14 low at $13.89/oz. Psychological support at $14.00/oz. may slow the decline, while the CCI indicator shows that the market is extremely oversold.

Silver (XAG) Daily Price Chart (August 2018 – May 20, 2019)

Gold Price Sell-Off Continues, Silver Price Hits a Six-Month Low

Trading the Gold-Silver Ratio: Strategies and Tips.

IG Client Sentiment data show that retail traders are 79.1% net-long gold, a bearish contrarian indicator. Recent daily and weekly sentiment shifts give us a stronger bearish contrarian bias.

— Written by Nick Cawley, Market Analyst

To contact Nick, email him at nicholas.cawley@ig.com

Follow Nick on Twitter @nickcawley1



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