Review and dynamics
Following strong decline in the index since the beginning of the month below the key support levels of 10423.0 (Fibonacci 61.8% after the decline since 1 December 2015 at the level of 11410.0) and 10310.0 The rise was caused by overall growth in the global stock indexes after last Sunday’s statement of the FBI Director James Comey in the letter to Congress that the FBI did not find evidence of the law violation in the Hillary Clinton’s correspondence from the private servers.
With the opening of the European session, the rise in the European and American indices continues.
Volatility in the financial markets will go up on Tuesday due to US presidential election of. The outcome of the election will has strong impact on the future economic policy of the United States and entire financial markets. In this situation technical analysis will be of the low significance compared with this important fundamental event.
Technical indicators show probability that the uptrend in the D index AX30 will continue with the nearest target of 10540.0 (ЕМА200 on 4-hour chart). Next target can be at the level of 10775.0 (annul highs). Breakout of the support level of 10310.0 (ЕМА200 on the daily chart) was false.
On the hourly and 4-hour charts the indicators OsMA and Stochastic give signals for long positions. On the daily chart the indicators also give signals for long positions.
As an alternative reverse scenario the price can go below the level of 10310.0 (ЕМА200 on the daily chart) to the level of 10120.0 (Fibonacci 50.0%). Consolidation of the price below support level of 9810.0 (Fibonacci 38.2%) may cause further decline to the lows of September 2014 at the level of 8300.0.
Support levels: 10310.0, 10120.0, 10073.0 and 9810.0.
Resistance levels: 10423.0, 10540.0 and 10775.0.
Buy on the market. Stop-Loss: 10365.0. Take-Profit: 10540.0 and 10775.0.
Sell Stop: 10365.0. Stop-Loss: 10425.0. Take-Profit: 10310.0, 10120.0, 10073.0 and 9810.0.
Rebound from the level of 10310.0
Indicators give buy signals