This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
European bourses are starting the second quarter in the red, unimpressed by either China PMI rebounds (seasonality?) or solid PMI reports from Europe. Focus may well have reverted to global growth headwinds after poor Japanese Manufacturing sentiment reports overnight. This is further undoing the recent excitement from a surprisingly dovish speech from Fed chair Yellen. An oil price languishing around recent lows is adding to the fray (please, forget any production freeze), along with traditional reticence in the run-up to this afternoon’s monthly US Jobs report (cue volatility at 1.30pm). Next week also sees the start of what is sure to be another ugly quarterly earnings season for US corporates. Persistent lowering of guidance means consensus is likely to be beaten as per usual, but that doesn’t detract from the fact that it’ll be slim pickings for profits growth.
UK 100 found support at 6100 after yet another sell-off from March channel highs at 6220. DAX30 bounced off 2-week shallow rising support at 9775. Wall Street rebounded from 17620, March resistance-turned-support from 23 and 28 March. Gold has moved into the apex of a bullish narrowing continuation pattern at $1235.
Click below to expand sections
UK 100 found support at 6100 amid its fall-back from the March’s 6100-6200 channel highs. Bulls still hopeful we are in consolidation mode, biding our time before a breakout rally towards 6400 to overcome longer term downtrend. Bears glad to see another test of lows, hoping to see 6000 again to give that downtrend another lease of life.
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
DAX sell-off halted by 2-week shallow rising support at 9775 which keeps the index in a sideways shift much like the UK Index . Back above 9800 sees the bulls eyeing a return to 9950, possibly even highs of 10100. Bears watching to see whether 9750 gives way for a drop back to 9600
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 Dow Jones has found support at 17620 resistance-turned-support dating back to 23 and 28 March. This could help with a rebound to recent highs, although we not the sell-off has yet to re-test the 1-month trendline of rising support.
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 has moved further into the apex of a bullish narrowing continuation pattern at $1235. The move in from $1210 lows suggests this could lead to an upside breakout if the current risk-off sentiment in equity markets worsens.
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