30.05.2014 - ​Technical view on stock indexes

Price of the futures on the broad U.S. stock index S&P500 has broken through the upper boundary of the rising channel and is consolidating below the level of 1920. For the continuation of growth the price needs to gain a foothold above this mark. Potential for further growth is limited, and we expect the price correction within the channel with the first target around 1900. We keep medium and long term negative outlook for the futures.

Nearest resistance levels: 1920, 1950, 2000

Nearest support levels: 1900, 1886, 1873, 1860, 1813

Price of the futures on German index DAX30 continues to consolidate below the upper limit of the upward channel. We expect price downward correction, with the first goal near 9800. In case of further decline, a signal to sell will be price fixing below 9630. We expect the price correction in the coming days and keep a long-term negative outlook for the futures.

Nearest resistance levels: 10000

Nearest support levels: 9900, 9800, 9700, 9630, 9400, 9200

The price of futures on Japanese index Nikkei225 has broken through the strong resistance level 14600 and is trying to gain a foothold above it. In case of success, we recommend to open long positions with the target near 15,000. Within the correction, the price may fall to 14,400. We expect growth of the futures price in the medium term, but keep a long-term negative outlook for the futures.

Nearest resistance levels: 15000

Nearest support levels: 14600, 14500, 14400, 14000, 13900

Japanese Yen on April 16, 2014

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