This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Markets are in the blue this morning after a strong session in the US and Asia overnight. US markets were boosted by comments from WSJ Fed watcher Jon Hilsenrath said in this evening’s statement that there would be no big change in the Fed’s forward guidance on rates being kept low for a considerable time. Asian markets were given a lift by the PBOC, China’s central bank, reporting that it will boost stimulus measures to the country’s five biggest banks by some $81b. Ukraine is attempting to draw a line under its confrontation with Russia by approving limited autonomy for territories now controlled by Russia-backed separatists. Closer to home, the latest poll on Scottish independence showed the “no” campaign leading the “yes” side by 52 percent to 48 percent before tomorrow’s crucial vote.
With the UK’s UK 100 we asked the question yesterday, would we see a convincing break of the prior support level? The answer was no. The UK 100 recovered most of its losses yesterday and is now trading at a prior level of resistance at the 200 day MA ahead of tomorrow’s Scottish Independence vote. A break of this level could see the UK 100 push forward towards the next resistance level around 6860.
Germany’s DAX failed to maintain a break of the 5 week rising trend line yesterday, finding support once again. Therefore this 5 week rising trend for the Dax is still intact as it looks to reclaim early September highs of 9800, although it may find resistance at the 200 day MA level which the Dax is currently trading at. After a bounce off the oversold level the RSI is now gaining momentum and moving towards the overbought line.
The US Dow Jones found resistance at all-time highs again yesterday after dovish comments from renowned Fed watcher Nilsenrath gave that market a lift. This keeps the Dow trading in the range it has been in for the past month ahead of tonight eagerly anticipated FOMC statement. For now though it looks as if this sideways channel will continue.
Click below to view graphs.
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
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
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