26.08.2014 - Technical view on stock indexes

The price of the futures on the American stock index S&P500 stopped growing and consolidating below the psychologically important level of 2000. To resume the growth, the price needs to break through and gain a foothold above this mark. Considering continued growth and a strong resistance level, we expect the beginning of correction in price in the near future and recommend to open short positions with a stop above 2000. We maintain medium-term negative outlook.

Nearest resistance levels: 2000

Nearest support levels: 1990, 1975, 1950, 1940, 1915, 1900, 1886, 1873, 1850, 1780

The price of the futures on the German stock index DAX30 after breaking through the level of 9400 has continued to grow inside the rising channel. In case of continued current dynamics, the price will reach the levels 9600-9630. The signal of a reversal of the current upward trend will be fixing the price below 9300. We maintain medium-term negative outlook, but assume continued growth in the near future.

Nearest resistance levels: 9600, 9800, 9870, 10030, 10500

Nearest support levels: 9400, 9190, 9000, 8915, 8600, 8000

The price of the futures on the Japanese stock index Nikkei225 could not overcome the nearest local maximum of about 15600 and started to correct downwards to 15500. If the price fixates below this level will be completed the formation of "double top", which indicates a trend reversal. Despite this, we save positive medium-term forecast.

Nearest resistance levels: 15800, 16000

Nearest support levels: 15500, 15350, 15200, 15000, 14800, 14700, 14600, 14400

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.