This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equity markets are in the blue this morning, but like yesterday, not by much. US macro data remains mixed so that markets still betting on no increase in US interest rates before year-end (expecting any potential move to come well into 2016) and thus a mildy bullish mood prevailing with global central bank peers either having already eased policy (China) or being largely expected to do so (Japan, ECB). Tightening by the US Fed thus seen as being divergent with global peers’ actions, a driver for uncertainty and thus a bad idea.
UK Index remains beneath the 6400 handle and in a downtrend from last Friday’s 2-month highs while the Oct uptrend still intact. DAX pushed up above late Oct falling highs, however still wrestling with 10800 – pause for breath after last week’s 600pt advance? Wall St remains in a similar situation following its own march north last week though now above yesterday’s resistance 17600. Gold looking to reverse course from down- to up-trend with a test of its 2-week falling channel ceiling and overnight breakout above $1170.
Click below to expand sections.
UK 100 bounced off rising trend line dating back to late Aug lows that forms the floor of an October rising channel, still below bugbear 6400 level while we note the 100-day MA potentially acting as resistance. Hourly RSI in an uptrend having rebounded from 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 remains below 10800, however completion of a messy bearish double top formation has given impetus to bulls looking to re-test that level. Beware double resistance just above, but if the index can push up and through 10850 we could see the second leg of a bullish flag pattern emerge.
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 futures potentially consolidating after strong gains on 22 and 23 Oct with the index again testing falling highs resistance from last Friday. Note 200-day MA at 17580 provided support yesterday which will encourage bulls looking for a return to May highs.
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 broke back above $1700, support around $1160 helping the commodity into the upper part of a nearly 4-month rising channel. Note the 200-day MA $1173 as potential resistance.
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