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Chart Signals: India breaks out as Asia indices play catch-up

Chart Signals: India breaks out as Asia indices play catch-up

The India 50 is breaking out of a head and shoulders base today as part of renewed interest in Asia indices. Japan 225 continues to benefit from JPY starting to fall back while a recovery in lagging mainland China indices is helping the Hong Kong 50 as well. Oil continues to bump up against $40 while US indices, CAD, AUD, NZD and gold are still looking a bit tired.

Asia Pacific Indices

Australia 200 continues to consolidate recent gains bouncing around in a channel between 5,075 and 5,225 around 5,185 a 38% retracement of its recent downtrend.

Japan 225 successfully retested channel support near 16,535 plus 50 on the RSI to indicate its underlying uptrend remains intact and has started to advance again, clearing 16,815 and driving toward 16,900 with next resistance near 17,000 then 17,150.

Hong Kong 50 has paused in the 20,710 to 20,810 area consolidating recent gains that left RSI a little overbought. It remains in an uptrend above Fibonacci cluster support with next potential resistance near the 21,000 round number.

India 50 is breaking out of a head and shoulders base with a double bottom head today, clearing 7,600 which has become support and advancing on 7,700 with next potential resistance near 7,755 then 7,810. RSI confirms upward momentum increasing.

North American and European Indices

US 30 is bouncing around between 17,540 and 17,650 so far, briefly touching a new high on trend with next resistance possible near 17.750.  RSI remains overbought indicating the potential for a pause or correction in the near term.

US NDAQ 100 continues to struggle with resistance at its 200-day moving average near 4,425 with next resistance on a breakout near 4,500 a round number and Fibonacci test. RSI suggests upward momentum levelling off. Next support near 4,390 then 4,345 in a pullback with next resistance on a rally near 4,465 then 4,500 a Fibonacci test.

US SPX 500 remains in an uptrend but appears to be pausing in the 2,040 to 2,050 area with next resistance near 2,060 to digest recent gains and work off an overbought RSI. Initial correction support possible near 2,025 then 2,015.

Germany 30 is retesting 10,000 as support having rallied up toward 10,100 earlier today with support rising toward 9,930. An advance from here would complete a head and shoulders base and signal an uptrend starting. Rising RSI indicates upward momentum increasing.

UK 100 is bouncing around between 6,150 and 6,220, with next resistance near 6,235 then the 200-day average near 6,265. RSI holding above 50 and higher lows indicate continued accumulation.


Gold is rolling over again, breaking down through $1,250 and retesting it as new resistance and falling toward $1,241 before bouncing back a bit. RSI falling toward 50 indicates upward momentum fading and a downturn pending with next support near $1,228 a Fibonacci test.

Crude Oil WTI is retesting $40.00 as resistance having bounced up off of $38.50 support. An overbought RSI suggests the recent rally has been overextended and the market may need to have a break or a correction in the near term. Initial support possible near $39.70 then $39.10 with resistance near $40.70.


US Dollar Index has stabilized just above 95.00 with a 94.60 to 95.40 trading range emerging.

EURUSD has stabilized in the $1.1235 to $1.1280 area after dropping back from $1.1345. RSI and pair action suggests we’re starting to pull back within a trading range having tested the top last week. Next support possible near $1.1200.

NZDUSD has stabilized in the $0.6750 to $0.6780 area having dropped back from $0.6870 but still trading well above its 50 and 200-day averages near $0.6620. RSI confirms sideways momentum.

AUDUSD has slipped back under $0.7600 a recent breakout point toward $0.7580 while RSI under 70 and rolling over suggests a downward correction starting with next potential support near the $0.7500 round number.

USDCNH has bounced back up through 6.4800 passing a Fibonacci test as it continues to rally up off of 6.4600 support. Next upside tests possible near 6.5000 then 6.5285 a round number and Fibonacci level. Higher low in the RSI indicates downward pressure starting to ease.

USDJPY continues to rally up off a successful retest of 111.00 support which completed a triple bottom toward 111.80. RSI trending up toward 50 indicates downward momentum weakening and an upturn possible. Next resistance possible in the 112.00 to 112.25 area.

EURJPY has levelled off in the 125.50 to 125.80 area still in a downtrend below 126.20 resistance with next support near 125.10 then 124.00. RSI back under 50 signals momentum turning downward again.

CADJPY remains in consolidation mode holding 85.00 within a 84.55 to 86.25 channel with RSI confirming sideways momentum.

USDSGD continues its trading bounce dup off of $1.3475 support as it eases oversold RSI conditions, bouncing into the $1.3580 to $1.3610 area with next resistance near $1.3660.

USDCAD is bouncing around between $1.3020 and $1.3080 today bouncing back a bit after failing to hold below $1.3000 last week, a sign of near-term exhaustion. An oversold RSI and a positive divergence suggest potential for an upward correction with initial resistance tests possible near $1.3090 then $1.3140.

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