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Tuesday, September 5, 2017

Technical Forecasts for CFDs (September 2017)


 AUS200
Dominant bias: Neutral
In the last few months, AUS200 has been in a neutral phase. The market is quite choppy, rough and unattractive, oscillating upwards and downwards with no directional movement. The choppiness and neutrality of the market is expected to continue for most part of September, as price fails to reach a serious imbalance. Last month, price reached a high of 5812.80 and a low of 5624.20. Therefore, there is a need for price to stay below the low of August or above its high, before there can be a directional bias (which would most probably happen before the end of September or in October).

SPX500
Dominant bias: Bullish
SPX500 generally went bearish in August, losing roughly 500 pips, and reaching a low of 2418.6.  From that low, price gained 500 points, to close the month of August on a bullish note (and that rally in the last few days of the month has already helped remove the threat against the recent bearish bias). The bullish movement is supposed to continue this month, and price could test the resistance levels at 2480.0, 2490.0, and ultimately, 2500.0. It is unlikely that price would be able to breach the resistance level at 2500.0 to the upside, because further bullish movement would be rejected at that point.



US30
Dominant bias: Bullish
US30 is currently bullish, but just like SPX500, it underwent some selling pressure in August. Price topped at 22189, and then went southwards by over 500 points, reaching a low of 21614. Further southwards movement was rejected at that low, and price began to make gradual recovering (owing to visible bullish efforts in the markets); thus saving the ongoing bullish outlook on the market, which has been in place since last year. Price is expected to continue edging upwards slowly and steadily, reaching the distribution territories at 22000, 22100 and 22200. These are the initial targets for the month.

GER30
Dominant bias: Bearish
This unique market has become bearish since July 2017 (12679.0), and from the high of that month, price has lost more than 6000 pips. There is a Bearish Confirmation Pattern, both in the daily chart and the 4-hour chart, signaling further bearish movement in September. The bearish bias on the market cannot be rendered completely invalid until price goes above the high of July (12679.0). The first target for this month is the demand level at 11865.5 (the low of August), after which price would go towards other demand level at 11800.0.

FRA40
Dominant bias: Bearish
FRA40 is a bear market – although volatile and choppy. Price has lost over 4,000 pips so far, after reaching the high of May 2017 (5487.7). Given the recent price action, rallies proffer great short-selling opportunities in the market, forming a series of lower highs and lower lows. Since the low of last month (4990.7), price has bounced upwards by 1,400 point, but it got corrected a bit at the end of the month, starting this month on a slight bearish note. Owing to the current Bearish Confirmation Pattern in the market, it is anticipated that, at least, another 1000 points would be lost in September.  


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