27.11.2014 - Technical view on stock indexes

The price of the futures on the American stock index S&P500 moved away from the upper boundary of the rising channel, but continues a gradual increase. In the near future the price may reach the important level of 2100, but the potential for further growth is declining. In the near future we may see a correction of the price to the lower boundary of the channel. If the price fixates below 2040, we recommend to open short positions with the potential of reduction by 10-15%. We expect the beginning of the downward movement in the medium term.

Nearest resistance levels: 2100

Nearest support levels: 2060, 2040, 2020, 2000, 1990, 1950, 1915, 1900, 1886, 1860, 1820

The price of the futures on the German stock index DAX30 shows a steady growth along the sloping resistance line. At the moment, the price approached the psychologically important level of 10000, near which the price is likely to consolidate in the coming days. According to our estimates, the price cannot continue to rise in the near future and will begin to correct downwards.

Nearest resistance levels: 10030

Nearest support levels: 9870, 9800, 9600, 9400, 9190, 9000, 8800, 8600, 8200, 8000

The price of the futures on the Japanese stock index Nikkei225 has broken through the lower boundary of a triangle and is reduced. In case of consolidation of quotations below 17000, we will be forced to close long positions and open short ones with targets near 15800-16000. Despite the current decline and the possibility of a substantial correction, we maintain a positive outlook for the medium-term and recommend holding long positions.

Nearest resistance levels: 17500, 18000

Nearest support levels: 17000, 16700, 16400, 16000, 15800, 15450, 15200, 15000, 14800

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