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Index Focus - 5 October 2016

Equities are taking a breather from recent gains, back mulling over multiple market headwinds. These include misplaced fears about a premature tapering of the ECB’s QE bond-buying stimulus programme (highly unlikely), an imminent Fed rate hike (much hawkish comment from non-voters), a hard Brexit (2.5 years away, at least), IMF growth cuts, a too-close-to-call US election and of course how the Deutsche Bank situation pans out. Note GBP off 31yr lows, now hindering the UK 100 after several days of hard-brexit inspired weakness provided the index with a welcome FX boost. The same is true of a EUR bounce hurting the DAX.

The UK 100  is testing 7045 intersecting rising support going back to mid-September. Can it hold up? The DAX 30 is still trading around the upper end of a 10200-10650 shallow falling channel. In contrast, the Dow Jones Futures is holding around the lower end of its 108125-18350 3-week narrowing range. Gold has made a major breakdown from both 2016 rising and 3-month sideways  trends. Is that it, or more to come?

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Where next?
  1. Will the index fall towards lows of 6650? or;
  2. Will the index rise towards highs of 7131?

The UK 100  is testing 7045 intersecting rising support going back to mid-September. Can it hold up?

Watch levels: Bullish 7065, Bearish 7055

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7045, 7030, 7000, 6980, 6955
  • Potential resistance: 7050, 7060, 7080, 7090, 7120, 7130

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 10780? or;
  2. Will the index fall towards lows of 10200?

The DAX 30 is still trading around the upper end of a 10200-10650 shallow falling channel, but struggling to overcome 10560 since the European open.

Watch levels: Bullish 10570, Bearish 10515

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 10540, 10530, 10510, 10480, 10460
  • Potential resistance: 10560, 10580, 10600, 10640, 10700

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 fall towards lows of 17950? or;
  2. Will the index rise towards highs of 18450?

Dow Jones Futures is holding around the lower end of its 108125-18350 3-week narrowing range. Bounce or breakdown?

Watch levels: Bullish 18195, Bearish 18135

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 18140, 18120, 18100, 18080, 18050
  • Potential resistance: 18180, 18200, 18240, 18280, 18315, 18340

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 $1050? or;
  2. Will Gold rise towards highs of $1375?

Gold has made a major breakdown from both 2016 rising and 3-month sideways  trends. Is that it, or more to come?

Watch levels: Bullish $1278, Bearish $1270

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 1272, 1270, 1267, 1260, 1250, 1240
  • Potential resistance: 1275, 1280, 1285, 1290, 1300, 1305

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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