This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equity markets may had a tough start to the day but have since delivered an impressive turnaround. Risk appetite has been revived and hopes raised that recent reversals can be resumed and April highs revisited. Losses in the US linked to retail sector concerns served to dampen sentiment overnight, overshadowing a surge in oil prices following a surprise drawdown in US Crude stocks. And while many question the weekly data’s significance as a turnaround signal, an IEA statement suggesting a ‘smaller global oil surplus as India drives demand gains’ would appear to be gaining traction as we write, sending oil prices to retest recent highs to the benefit of the oil majors. All eyes on the BoE statement this afternoon, not for policy change but for its latest thinking on the UK’s June referendum on EU membership. Commodity prices were higher overnight on a weaker USD, but note the greenback on the rise again.
The UK 100 has bounced from a test of 6100 but still has to overcome 3-week falling highs resistance around 6160. The DAX30 has found support just above 9800 rising support which could keep the February uptrend alive. Wall Street/Dow Jones futures have bounced from 17700 overnight lows to make a bullish break out at 17750. Gold is testing $1270 for support as risk appetite returns to the detriment of the safehaven which has backtracked from $1279 overnight highs.
Click below to expand sections
The UK 100 made a test of 6100 but has since recovered. However, the 3-week downtrend remains to be broken so another leg down cannot be ruled out. While a break of falling highs at 6160 would be welcome, we would like to see recent highs 6180 cleared too before assuming that last week’s reversal has resumed.
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
The DAX has found support just above its rising trendline at 9800 which keeps the February uptrend alive. However, beware 10100 recent resistance which dates back to late March.
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
Dow Jones futures have bounced from 17700 lows and an overnight sideways pause to make a bullish break at 17750. Reversal? Back to the 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 is testing $1270 for support as risk appetite returns to the detriment of the safehaven which has backtracked from $1280 overnight 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
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