This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equity indices are posting strong gains this morning as fears recede about the prospect of a UK exit from the European Union. This on the back of weekend Brexit polls suggesting a turnaround of the growing ‘Leave’ momentum that had sent UK equities to multi-month lows based on uncertainty over what the outcome would mean financially, economically and politically – in the UK and on the continent. Note Germany’s DAX outperforming today, in a reversal of last week’s underperformance that had been based on a Brexit vote being bad for the UK but worse for Europe. A relief rally in UK sterling is also helping via reciprocal USD weakness, befitting the commodity space – especially oil – which continues with its Friday rebound from June lows, Brent Crude already back above the key $50 marker.
The UK 100 has gapped sharply higher to get back above 6100 and trade the middle of its 6050-6300 May range. The DAX30 has gapped above 9800 and pushed on above 9900 to regain its early May range. Wall Street/Dow Jones futures have broken above 17800 which opens the door to a retest of June 18015 highs. Gold is holding above $1280 but moving into the apex of a bearish descending triangle pattern that could see it fall back towards $1200
Click below to expand sections
The UK 100 has gapped sharply higher to extend Friday’s rebound above 6100 and trade the middle of its 6050-6300 May range. 6200 has already been tested to the upside. 6130 is suggestive of support with intersecting support lurking at 6100 to stem any pullback. Note the overbought 4-hour RSI.
Watch levels: Bullish 6210, Bearish 6100
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 DAX30 has gapped above 9800 and pushed on above 9900 to regain its early May range. A re-test of 10000 doesn’t look out of the question, while 3-month intersecting support at 9800 looks solid.
Watch levels: Bullish 9985, Bearish 9875
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 have broken above 17800 which opens the door to a retest of June 18015 highs. Note steady rising lows overnight and an RSI not yet overbought. Bullish Inverse head & shoulders reversal back to June 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 moving into the apex of a bearish descending triangle pattern. We could also be in the final stage of bearish head and shoulder top reversal. A break of $1280 could result in a retrace to the lows of $1200 but note how well $1280 has held up against today’s equity market rally. A weaker USD can be thanked for that.
Watch levels: Bullish $1290, Bearish $1278
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