Technical Analysis: Major Indices – Friday rebound is a Dead Cat Bounce. March 16, 2020 974

  • The world major index entering 2020 with a bang, with major indices returning to previous high or breaking new highs. Technicals indicate most of the January bullish momentum was weak for most of the indices.
  • STI needs to cross the 2750 to make the rebound technically sustainable. S&P500 support level at 2353 level.

 

Support Zone 1: 2528.44-2588.74                                                                       Resistance zone 1: 3218.34-3231.18

                                                                                                                                     Resistance zone 2: 3360.00-3390.00

 

  1. STI has broken the 161.8% expansion level of supposed wave (iii)
  2. STI reached the lowest point in 3 years at 2528.40
  3. Friday saw a rebound above 2600 psychological level.
  4. Unless STI breaks above 2750 level for 3 daily consecutive periods, otherwise the rebound is just a dead cat bounce.

 

Support Zone 1: 1287.48-1335.31                                              Resistance zone 1: 3218.34-3231.18

Support Zone 2: 1199.48 – 1231.33                                           Resistance zone 2: 3360.00-3390.00

 

  1. Price briefly rebounded at support zone 1.
  2. However, rebound is short lived and continued selling may persist till support zone 2 in the coming trading week.

 

Support Zone 1: 4402.26-4525.82                                              Resistance zone 1: 5800-6000

Support Level 2: 4066.79-4248.68                                             Resistance zone 2: 6355-6360

                                                                                                             Resistance zone 3: 6600-6683

 

  1. The Indonesia index has slight rebound in anticipating the competition of wave 3.
  2. Price may have a short-lived rebound till 5000 level before a sell-off to support zone 1.

 

Support Zone 1: 1015.66-1051.77                                              Resistance zone 1: 1204.25

Support Zone 2: 853.92-914.55                                                 Resistance zone 2: 1721-1748

 

  1. TSE had a strong rebound on last Friday, with price closing above 1100 psychological level.
  2.  
  3. Price may continue to advance a short bullish correction till 1200 before a sell-off.

Support Level 1: 24222.47                                                             Resistance zone 1: 29558-30217

Support Zone 2: 21488.82                                                             Resistance zone 2: 32616-33513

Support Zone 3: 21488.82

 

  1. Hang Seng Index is forming a descending channel.
  2. Hang Seng had a rebound at 23,000 but it remains a struggle to close above support level 1.
  3. Selling pressure may persist till support zone 2.

 

Support Zone 1 : 20110.76-19689.90                                                       Resistance Level 1 : 18287.43

                                                                                                                          Resistance Zone 1 : 24453.24 – 24089.77

  1. Nikkei Index broke below the 20,000 psychological mark.
  2. Slight rebound at 17,000 level remains weaker than expected. And sell off will increase once it breaks below the 18,000 psychological level.

 

Support Zone 1: 1711.19-1819.40                                                                              Resistance zone 1: 2242.95-2278.72

                                                                                                                                         Resistance zone 2: 2434.75-2513.66

 

  1. The KOSPI index broke down below 2000 level last week.
  2. Price managed to stay supported at support zone 1, which is a crucial time for the Korean index.

 

Support zone 2: 8967.51-8726.59                                                                               Resistance zone 1: 10279.20-10700.56

                                                                                                                                            Resistance zone 2: 13596.89-13797.80

  1. German Dax broke below the support level 1 at 11250.00
  2. For the first time in 2 years the DAX is trading below the 10,000 level.
  3. Support zone 1 may act as a potential rebound but most likely the rebound is a corrective wave.

 

Support Zone 1: 5382.28-5217.16                                                                                              Resistance zone 1: 7800-7904.70

 

  1. The UK FTSE 100 index corrective is stronger than expected with wave (iii) closing below 5500 level. Price had a slight reaction at support zone 1 but it may soon be broken.
  2. Selling pressure may occurs at 5500 after a brief rebound.

 

Support Zone 1 : 17883.56-18388.40                                                       Resistance zone 1 : 28876.21-29598.67

Support Zone 2 : 15483.45-16495.54                        

 

  1. Dow Jones Industrial managed to stay above the support level 1 at 21712.53.
  2. Friday rally saw Dow recovered 50% of the losses incurred in a week.
  3. However, the Dow Jones industrial’s rebound may be a dead cat bounce as price did not close above 24,000 to form a hammer.
  4. Potential sell-off is at 24,500 level- 24,586.
  5. However, there may be a strong sell-off immediately near the last close price at 23185.62.

 

Support level 1 : 7056.24                                                                                           Resistance zone 1 : 11377.91-11611.65

Support Zone 2 : 6377.27-6566.32            

 

  1. Price continue to fall but rebounded near 7500 level.
  2. Price struggled to close above the support level 1 at 7056.24.
  3. Another round of sell-off may occur at 8000 psychological level.

 

 

Support zone 1 : 2353.30-2400.00

Support zone 2: 2133.23-2089.22                                                                             Resistance zone 1: 11377.91-11611.65

 

  1. SPX 500 remains elevated above the support zone 1.
  2. Same as Dow Jones industrial, the rebound on last Friday gains about 50% of the weekly loss.
  3. However, sell-off may persist till support zone 1.

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