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Index Focus – 18 Jul - 18 July 2014

An unfortunate escalation in geopolitical unrest combined with the Malaysian Airlines air disaster has seen indices pull back from recent recovery highs and the week-end is seeing risk aversion dominate on account of the uncertainty that lies ahead. Weakness not been as much as expected with investors confident that problems are isolated and/or will be contained and a market reversal avoided.

The UK’s UK 100  has broken down from a 5-day rising channel at 6720 which suggests it could merely have been a bearish flag pattern and so more downside could be on the way. We are below 6700, but the rising trend from February has yet to be tested again as was the case last week with the revisit of 6650.

Germany’s DAX is back testing major rising lows at 9685 which will need to be watched closely for any signs of genuine reversal. Even if this does occur, the index has the benefit of the 200-day moving average lying just below potentially offering some support. 

The US Dow Jones has come back from yet more fresh all-time highs, and off its worst levels it looks to have added another bounce off its major trendline (16900) of rising support from February. US results helping out with more positive than negative surprises, as well as continued M&A deal flow.

Click below to view graphs

Where next?
  1. Will the index rise towards highs of 6880? or;
  2. Will the index fall towards lows of 6640?

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 6640
  • Potential resistance: 6720, 6790, 6880

Other Technical Observations

Share 1wk 1m 3m 1yr 2yr 3yr 4yr 5yr
Perf % 1.0 -0.4 1.7 2.5 19.7 15.3 30.6 53.5

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

Where next?
  1. Will the index rise towards highs of 10048? or;
  2. Will the index fall below lows of 9645?

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 9645
  • Potential resistance: 9875, 10048

Other Technical Observations

Share 1wk 1m 3m 1yr 2yr 3yr 4yr 5yr
Perf % 1.0 -1.7 3.7 18.2 48.3 35.1 61.5 95.9

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

Where next?
  1. Will the index rise above highs of 17150? or;
  2. Will the index fall below rising lows of 16895?

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 16895
  • Potential resistance: 17150

Other Technical Observations

Share 1wk 1m 3m 1yr 2yr 3yr 4yr 5yr
Perf % 0.4 1.0 3.5 9.7 32.6 36.0 68.1 94.2

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

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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.

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