This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equity markets positive this morning on renewed optimism that Greece can return to the negotiating table and strike a last-minute deal with Creditors, negating the need for Sunday’s potentially ground-breaking referendum on bailout proposals.
Markets taking Tsipras’ request for a 2yr loan to tide the nation over as a signal that while his elected mandate may have been anti-austerity/anti-bailout it’s not necessarily anti-Euro and he is fearful of a Grexit. Investors also watching referendum polls closely with certain suggesting support for a ‘no’ vote waning. Athens back on thin financial ice to say the least with no safety net, no access to markets and no financial help without concessions.
Another UK Index bounce from fresh overnight lows failed to better 6600. DAX still hanging around 11000. Wall St also bounced off fresh lows, but yet to regain yesterday’s highs 17740. Gold back below $1175, struggling with downtrend from 28 May highs due to USD strength and alternative safehaven demand.
UK 100 bounced off fresh overnight lows 6497 but a turn back at 6588 means failure to better 6600 (again) keeping downtrend from end-may intact with falling highs and lows. Note daily RSI not yet oversold.
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
Germany’s DAX still hanging around 11000 with recent long candlestick wicks suggesting much volatility and indecision. This leaves it equidistant from the borders of the 3-month falling channel, with bullish and Bearish potential to 11500 and 10630.
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
US Dow Jones made fresh lows to test 17600 but its bounce like the UK Index has been unable to better yesterday’s highs, or indeed its 17700 200-day moving average which could prove a hurdle after the recent break below. Bounce or break?
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’s bounce has failed to make a higher high, which keeps the downtrend form end0-May intact. The $1175 even looks to have become resistance overnight on revived Greek optimism. This is further depressing demand for the safehaven, already hindered by a stronger USD and preference for alternative stores of value .
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