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Index Focus - 20 September 2016

Equity indices are surprisingly positive this morning in spite of tomorrow’s monetary policy updates from Japan and the US. This suggests that investors are comfortable taking more risks, pricing in a positive outcomes from the pair; the Fed holding fire and Japan turning the stimulus dial up a notch in response to a detailed review of current measures. Note oil hovering back around September lows, at odds with slim gains for metals, notably copper back on the front foot.

The UK 100 has staged another breakout, this time through the 6820 mark which could see it continue to September highs of 6930. The DAX 30 continues today’s breakout trend after shooting through 10380 and is looking to consolidate its position. Dow Jones Futures may have lost yesterday’s momentum as investors await the Fed but remains in uptrend. Gold is trading positively for the second session in a row as the interest-rate sensitive metal is favoured by investors.

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Where next?
  1. Will the index fall towards lows of 6650? or;
  2. Will the index rise towards highs of 6950?

The UK 100  has staged another breakout, this time through the 6820 mark which could see it continue to September highs of 6930 should tomorrow’s macro events play out according to investors.

Watch levels: Bullish 6845, Bearish 6815

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 6825, 6815, 6800, 6785, 6770, 6750
  • Potential resistance: 6860, 6880, 6890, 6900, 6920

Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.

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Where next?
  1. Will the index fall towards lows of 10250? or;
  2. Will the index rise towards highs of 10770?

The DAX 30 continues today’s breakout trend after shooting through 10380 and is looking to consolidate its position.

Watch levels: Bullish 10450, Bearish 10400

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 10400, 10380, 10365, 10345, 10320, 10305, 10250
  • Potential resistance: 10435, 10445, 10460, 10490, 10540, 10670

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

Where next?
  1. Will the index rise towards highs of 18675? or;
  2. Will the index fall towards lows of 17900?

Dow Jones Futures may have lost yesterday’s momentum as investors await the Fed. Narrowing pattern since mid-month?

Watch levels: Bullish 18190, Bearish 18140

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 18160, 18140, 18120, 18105, 18090, 18070
  • Potential resistance: 18172, 18180, 18185, 18195, 18230, 18255

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

Where next?
  1. Will Gold fall towards lows of $1200? or;
  2. Will Gold rise towards highs of $1375?

Gold is trading positively for the second session in a row as the interest-rate sensitive metal is favoured by investors. However, the 2016 uptrend may have recently been breached, putting the safe haven in a 3 month sideways $1305 to $1340 range.

Watch levels: Bullish $1318, Bearish $1314

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 1315, 1314, 1312, 1310, 1308, 1306
  • Potential resistance: 1316, 1317, 1318, 1320, 1321, 1322

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

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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.

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