This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equity indices are in the green this morning as crude oil prices grind higher and risk sentiment remains buoyed ahead of this afternoon’s US Jobs report. The outcome of that looks priced in with a low bar having been set at 160,000 job adds – if that’s met or exceeded, expect the Fed to jump on it. A positive US Services PMI read this morning is also serving to bolster the mood among those touting a good bill of health for the US economy. Good vibes all round!
Note Brexit jiggery pokery appears to have been kicked to the sidelines, as has just about everything else because it’s Non-Farms Friday. Surprise surprise…
The UK 100 is re-testing the 6250 level that represents the floor of late May’s sideways range. The DAX30 is undecided on direction after a volatile start to the day, yet could benefit from a weaker Euro this afternoon. Wall Street/Dow Jones futures are flat (bullish flag amid bullish head & shoulders reversal?) and Gold continues to move into its late May narrowing range which, given the current situation, looks like consolidation ahead of further downside.
Click below to expand sections
The UK 100 has made an exploratory foray north this morning, launching itself clear of the neckline of a 4-day bullish head & shoulders reversal pattern. Currently consolidating once more, Bulls are looking to the recent up move to continue towards the pattern’s completion at or beyond the end-May high 6293. Bears, meanwhile, seeing 6250 resistance holding firm.
Watch levels: Bullish 6260, Bearish 6210
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 looks under a little pressure this morning, though it is still positive. If the index can break out above 10275, we’ve a potential complex head and shoulders pattern that could deliver further gains back to the highs of 10373. Note however that a triple bottom at 10160 may complete at 10300.
Watch levels: Bullish 10290, Bearish 10215
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
Wall Street/Dow Jones futures are consolidating after breaking out above the neckline of their own bullish head & shoulders reversal. Bulls seeing current consolidation as part of a bullish flag heralding further upside towards 17930 while bears are seeing the rally capped around 17860, if not at current levels.
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 is moving further into a narrowing range – bears seeing that become a continuation pattern ahead of resumption of the downtrend from the 2 May high, in accordance with current risk appetite in equity and oil markets.
Watch levels: Bullish $1220, Bearish $1205
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