This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Global markets endured steep losses yesterday as concerns over global growth rattled through the markets with the International Monetary Fund (IMF) cutting its outlook for global growth. The US Dow Jones was one of the hardest hit, falling nearly 300 points, its steepest loss since the end of July. The Asian market’s picked up the baton and continued the descent as Chinese HSBC services PMI data failed to impress.
The UK’s UK 100 broke back below the two key support levels that it regained earlier this week after global growth concerns hit markets hard. The UK 100 is now trading down towards the lows of the year with the 50 day moving average crossing below the 200 day moving average. The RSI is trading at the oversold level. The key question now for the UK 100 is whether it will once again break back above those broken support levels or will it now test support at year lows?
Germany’s DAX just keeps falling as it still continues to make lower highs and lower lows. After finding support yesterday at 9000 the Dax bounced back a touch, however should that level be broken then we could see the Dax back at year lows around 8900. The Dax is still trading below all its major moving averages, with the 20 day moving average breaking below the 50 day moving average. The RSI, however, has bounced off oversold and is now finding some upward momentum.
The US Dow Jones was hardest hit yesterday after the IMF slashed its global growth forecast. The Dow did find support yesterday at its 200 day moving average which could prove to be a key line of support. The futures are pointing to a higher open this afternoon as the Dow looks to get back into the 17000’s. The RSI is languishing towards oversold but will very little direction. A slow day for macro data will give the headlines to the company earnings which kicks off tonight.
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