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Index Focus - 6 October 2016

Equities are negative this morning with the UK’s UK 100 held back by a combination of some big defensives on the back foot, a GBP bounce from lows stifling translational gains for those internationally exposed, profit taking in Tesco after yesterday’s spike and an easyJet profits warning. This is offsetting strength among a mix of Financials and Oil.  Germany’s DAX is seeing gains by financials countered by telcos and airline weakness while futures suggest a slightly negative stateside open this afternoon in light of hawkish Fed chat, ECB taper jitters and an article about Bundesbank in a bind regarding the Target2 settlement system and a hard Brexit.

The UK 100 , still in a downtrend from recent highs, looks headed for a test of 7000. The DAX 30 has turned back from another test of 10650, bolstering the ceiling of a shallow falling channel. Rather similarly, Dow Jones Futures have stalled at 18300 falling highs. Double top and retrace? Gold may be holding above yesterday’s $1262 lows, but undecided whether to bounce or keep falling towards $1250.

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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 still in a downtrend from recent highs, looks headed for a test of 7000. RSI almost oversold but not quite. Bounce?

Watch levels: Bullish 7035, Bearish 6995

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7000, 6980, 6955, 6935, 6925, 6900
  • Potential resistance: 7020, 7030, 7040, 7060, 7080, 7090, 7120

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 rise towards highs of 10800? or;
  2. Will the index fall towards lows of 10100?

The DAX 30 has turned back from another test of 10650, bolstering the ceiling of a shallow falling channel. Retrace? Bearish double-top pattern (worth 150pts) possible if it breaks below 10500.

Watch levels: Bullish 10585, Bearish 10540

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 10550, 10540, 10525, 10515, 10500, 10480, 10460
  • Potential resistance: 10570, 10580, 10600, 10620, 10630, 10645

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 18050? or;
  2. Will the index rise towards highs of 18450?

Dow Jones Futures have stalled at 18300 falling highs. A retrace to the floor could be helped by a bearish double top (worth 45pts) it we break below 18265

Watch levels: Bullish 18290, Bearish 18260

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 18265, 18250, 18240, 18220, 18200, 18180, 18140
  • Potential resistance: 18280, 18290, 18300, 18305, 18320, 18340, 18370

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 $1250? or;
  2. Will Gold rise towards highs of $1375?

Gold may be holding above yesterday’s $1262 lows,but undecided whether to bounce or keep falling towards $1250. Note RSI oversold.

Watch levels: Bullish $1272, Bearish $1260

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 1263, 1262, 1260, 1250
  • Potential resistance: 1267, 1270, 1275, 1277, 1282, 1286

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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