This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equities are positive this morning as a modicum of trust in central banks’ willingness to intervene returns to the markets. Asia exposure and a weak GBP are boosting those stocks lucky enough to benefit from either or both – think miners, oil majors and a select group of major defensives – and sees them contributing most to the UK 100 in terms of points. At the other end we’ve got a mix of those banks unlucky enough to have seen their shares impacted negatively post-results (it’s a 50/50 punt if you’re trading with banks these days), retailers and stocks that are simply selling back from recent highs.
The UK 100 has tested the ceiling of what could be a new 170pt trading range, with its hourly RSI hanging around in or near overbought territory. The DAX 30 has also tested resistance which could lead to a double top reversal, especially if the Euro strengthens off the back of a weaker Sterling. Dow Jones futures are in a rising channel with a pop above its current level 18383 likely to please bulls. Gold is a little weaker despite a slightly weaker USD this morning.
Click below to expand sections
The UK 100 is consolidating into a new trading range as it sells back fromearlier highs just north of 6780. The RSI has fallen back strongly form overbought.
Watch levels: Bullish 6765, Bearish 6730
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
The DAX 30 is breaking down out of a 2 day rising channel and testing support at the 100-period moving average. Note resistance at a falling trend line potentially causing a correction back to the lows of 10,100.
Watch levels: Bullish 10290, Bearish 10200
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
Wall Street/Dow Jones futures are supported around 18360 and a bullish convergence of the 200- and 50-period moving averages. Resistance at 18400 needs to be bettered if a return to the week’s highs is to be considered a possibility.
Watch levels: Bullish 18410, Bearish 18335
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
Gold in a narrowing range with support above the major moving averages.
Watch levels: Bullish $1366, Bearish $1356
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research