Stock Market Technical Analysis
Daily technical analysis for the most popular stock market indices as well as individual shares.
The following technical analysis looks at both short-term and long-term market moves. The analysts review the support & resistance levels and give opinions on where the markets are heading. For more technical analysis also see:
Stock Market Technical Analysis - Updated: 22 February 2017
|| [7:32am] FTSE 100 Technical Analysis (30 mins chart)
Comment: The RSI is overbought and is reversing down.
- FTSE 100 pivot point: 6865
- Our preference: Long positions above 6865 with targets @ 6990 & 7020 in extension.
- Alternative scenario: Below 6865 look for further downside with 6818 & 6785 as targets.
|| [7:36am] Dow Jones Technical Analysis (30 mins chart)
Comment: The immediate trend remains up and the momentum is strong.
- Dow Jones pivot point: 17765
- Our preference: Long positions above 17765 with targets @ 18070 & 18180 in extension.
- Alternative scenario: Below 17765 look for further downside with 17610 & 17545 as targets.
|| [3:53am] The Dow Jones futures market closed higher on Wednesday. The high-range close sets the stage for a steady-to-higher opening on Thursday. Stochastics and the RSI are neutral-to-bullish signalling that sideways-to-higher prices are possible near-term. If the Dow extends this year's rally into uncharted territory, upside targets will be hard to project. Closes below the 20 day moving average crossing are needed to confirm that a short-term top has been posted.
|| [7:36am] S&P 500 Technical Analysis (30 mins chart)
Comment: The immediate trend remains up and the momentum is strong.
- S&P 500 pivot point: 2070
- Our preference: Long positions above 2070 with targets @ 2108 & 2118 in extension.
- Alternative scenario: Below 2070 look for further downside with 2053 & 2043 as targets.
|| [7:32am] The S&P 500 (2099.5) broke above its 20 DMA (2089.8 - flat slope) and its 50 DMA (2061.6 - flat slope).
|| [3:53am] The S&P 500 futures market closed higher on Wednesday and the high-range close sets the stage for a steady-to-higher opening when Thursday's session begins trading. Stochastics and the RSI are turning bearish hinting that a pause or short-term top might be in or is near. Closes below the 20 day moving average crossing are needed to confirm that a short-term top has been posted. If it renews the rally off November's low, weekly resistance crossing is the next upside target.
|| [3:53am] The Nasdaq futures market closed higher on Wednesday and the high-range close sets the stage for a steady-to-higher opening when Thursday's session begins trading. Stochastics and the RSI are turning neutral-to-bearish hinting that a short-term top might be in or is near. Closes below the 20 day moving average crossing would confirm that a short-term top has been posted. If it renews the rally off November's low, September's high crossing is the next upside target.
|| [7:36am] DAX 30 Technical Analysis (30 mins chart)
Comment: The RSI is mixed to bullish.
- DAX 30 pivot point: 11740
- Our preference: Long positions above 11740 with targets @ 12035 & 12195 in extension.
- Alternative scenario: Below 11740 look for further downside with 11600 & 11400 as targets.
|| [7:32am] UK Shares - Crossing Over their 50 Day Moving Average:
- Ashmore Group (+2.19% to 293.6p)
- BP (+2.39% to 436.1p)
- Hammerson (+1.81% to 673.5p)
- Land Securities (+2.19% to 1260p)
- Stagecoach Group (+1.91% to 347.5p)
UK Shares - Crossing Under their 50 Day Moving Average:
- Hunting Plc (-1.56% to 466.5p)
|| [7:32am] American Shares - Crossing Over their 50 Day Moving Average:
- 3M (MMM +1.36% to $166.47)
- AES Corporation (AES +3.69% to $12.64)
- Anadarko Petroleum (APC +2.67% to $82.59)
- Baker Hughes (BHI +2.55% to $60.76)
- Becton Dickinson (BDX +2.09% to $144.51)
- Boston Properties (BXP +2.63% to $141.13)
- CA Technologies (CA +2.58% to $32.365)
- Cabot Oil & Gas (COG +1.46% to $28.48)
- Cimarex Energy (XEC +4.12% to $110.58)
- Denbury Resources (DNR +7.58% to $7.95)
- Dentsply International (XRAY +1.85% to $52.075)
- Dover Corp (DOV +3.95% to $72.1)
- Dow Chemical (DOW +1.95% to $47.54)
- DuPont (DD +1.78% to $76.01)
- Eaton Corp (ETN +1.24% to $68.52)
- EOG Resources (EOG +4.45% to $90.66)
- EQT Corp (EQT +2.05% to $79.02)
- Flowserve Corp (FLS +2.73% to $58.38)
- Frontier Communications (FTR +1.76% to $7.52)
- Gap (GPS +2.54% to $42.33)
- Goodyear Tire & Rubber (GT +3.95% to $26.05)
- Halliburton (HAL +3.25% to $41.59)
- Helmerich & Payne (HP +4.54% to $66.94)
- IBM (IBM +1.82% to $159.81)
- Kimco Realty (KIM +2.81% to $27.06)
- Kinder Morgan (KMI +1.79% to $41.56)
- LyondellBasell Industries (LYB +5.02% to $86.81)
- Mead Johnson Nutrition (MJN +1.39% to $101.38)
- Motorola Solutions (MSI +2.04% to $66.65)
- Murphy Oil (MUR +4.34% to $49.29)
- NextEra Energy (NEE +3.51% to $106.9)
- Nisource (NI +4.41% to $43.77)
- Noble Energy (NBL +5.5% to $48.12)
- NRG Energy (NRG +4.15% to $25.34)
- Oracle (ORCL +2.94% to $44.13)
- Paccar (PCAR +1.86% to $63.735)
- Parker Hannifin (PH +1.85% to $121.64)
- Pentair (PNR +2.24% to $66.06)
- Pitney Bowes (PBI +1.92% to $23.34)
- Precision Castparts (PCP +1.65% to $211.59)
- Public Service Enterprise (PEG +2.38% to $42.22)
- QEP Resources (QEP +2.83% to $21.11)
- Quanta Services (PWR +1.47% to $28.39)
- Sempra Energy (SRE +2.79% to $112.31)
- Spectra Energy (SE +3.78% to $35.7)
- Stanley Black & Decker (SWK +2.31% to $96.65)
- Stryker (SYK +1.33% to $93.11)
- Twenty-First Century Fox (FOXA +3.1% to $34.92)
- Tyco International (TYC +1.51% to $42.92)
- Xylem (XYL +3.46% to $35.87)
- Zimmer Holdings (ZMH +3.41% to $119.21)
American Shares - Crossing Under their 50 Day Moving Average:
- Delta Air Lines (DAL -1.8% to $45.81)
- Fedex (FDX -1.37% to $173.3)
- Flir Systems (FLIR -1.35% to $31.51)
For more stock market views or technical analysis see:
Applying Technical Analysis to Stock Markets
Below, an older (and still useful) case study on the US stock market by Shai Heffetz, InterTrader, 17-Aug-2011.
The current potential for a bear market phase is present across many US and global stock market indices, however, for the purpose of this discussion we will specifically consider the S&P 500.
This index includes stocks from the two major US stock exchanges, NASDAQ and the New York Stock Exchange. As such, it represents 500 of the largest companies in the United States and also a number of companies with headquarters situated outside the US. It is often cited as a measurement of the US economy and a leading indicator of things to come.
The chart below covers the longer-term trend for the S&P 500. Here we see that it broke out of the Ichimoku cloud at the beginning of September 2010 and entered a strong bull phase that lasted for nearly six months. This was despite a number of minor price corrections in the process.
This lasted until the middle of February 2011 when the bull market starting running out of steam. At the middle of March 2011, the price moved back into the Ichimoku cloud, leading to a period of sideways trading that lasted for about five months.
This can be seen in more detail in the chart below. Despite several up and down swings, the spread betting price remained in a relatively narrow range, dipping in and out of the Ichimoku cloud several times.
On 1 August, it broke downwards out of the Ichimoku cloud. Many traders seemed to expect it to turn around again before reaching the support level of 1264.90, where it had turned around on the 15 June.
Sadly, this did not happen. On 2 August, the price formed a new low of 1253.60 and after that, it went into freefall. On 9 August, it temporarily dropped to 1079.90 before recovering again somewhat.
Since then, it has recovered further and even broken through the red short-term average of the Tenkan Sen. At the time of writing, it is trading at 1191.30.
What caused the severe decline we saw since the beginning of August? There are a variety of factors, including the US debt crisis, the continuing economic woes in Europe, and worse than expected economic performance in the US.
Purely from the point of view of index technical analysis, we are currently right in the middle of a bear market. The price is far below the Ichimoku cloud and the green Chinkou Span line is also well below the price 26 periods ago.
Further bad news could easily see the market test new lows. If the price drops below the red Tenkan Sen again, prepare yourself for a continuation of the bear phase.
Traders who plan to go long of the S&P might have a long wait. It is a virtual eternity from where we stand now to the recent maximum of 1357.00 that we saw on the 7 July.
Before the price emerges upwards from the Ichimoku cloud and reaches that level, there can be no talk of anything resembling a bull run.
As always, there will be opportunities for day traders to cash in on short term movements. If we look at the 4-hour chart below it is clear that a short-term opportunity will present itself if the price breaks out of the Ichimoku cloud in an upwards direction.
Spread Trading and CFDs carry a high level of risk and you may lose more than your initial investment. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
Article approved/supplied by PipTrade which is a trading name Henyep Capital Markets (UK) Limited which is authorised and regulated by the Financial Conduct Authority. Register No: 186171.
'Stock Market Technical Analysis' edited by Jacob Wood, updated 22-Feb-17
Technical Analysis Index - an Index of Daily Technical Analysis articles covering Trends, Supports and Resistance Levels for some of the major Forex markets as well as US Stock Market Indices like the Dow, NASDAQ 100 and S&P 500.
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