24.07.2014 - Technical view on stock indexes

The price of the futures on the American stock index S&P500 reached historical highs and now is trying to consolidate above 1985. The further growth is limited by psychological resistance level 2000. We expect that growth will stop soon and after consolidation will start significant correction with the first goal around 1950. Medium-term outlook remains negative.

Nearest resistance levels: 2000

Nearest support levels: 1985, 1965, 1950, 1930, 1915, 1900, 1886, 1873

The price of the futures on the German stock index DAX30 after a strong growth has reached the upper boundary of the descending channel and a strong the level of 9800. In case of continued growth, a buy signal will become fixing the price above 9870, but even in this case, the growth potential is limited by the level of 10050. We expect the resumption of the downward price movement within the downward channel and recommend to open short positions with the target about 9400 and a stop above 9870. Medium-term outlook remains negative.

Nearest resistance levels: 9800, 9870, 10030, 10500

Nearest support levels: 9635, 9400, 9190, 8915

The price of the futures on the Japanese stock index Nikkei225 reached the top of the channel and the level of 9800, but then began to correct down and will likely continue downward movement within the local downward channel with the objectives of 9635 and 9400. In case of growth, the price may reach the levels of 9870 and 10000. We maintain a medium-term negative outlook.

Nearest resistance levels: 15500, 15800

Nearest support levels: 15000, 14700, 14600, 14400, 14000, 13900

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.