This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equity indices are off their worst level, but still very much under pressure as markets remain risk averse into the new week on account of UK referendum Brexit fears, China data adding to slowdown fears and what major central bank policy updates might (or might not) offer us this week. A US Crude oil price back below $50 is not helping, nor sovereign bond yields near record highs if not already negative while the US dollar holds up near recent highs to the detriment of commodities, excluding the precious metals of course.
The UK 100 is toying with a bullish breakout at 6100 to clear the first hurdle for a recovery rebound. The DAX30 has made a bullish bounce back above 9700 but already found resistance at 9775. Wall Street/Dow Jones futures have made a bullish bounce from 3-week rising lows at 17800. Gold continues to benefit from risk aversion with support at $1280 in a strong uptrend towards 2016 highs of $1305.
Click below to expand sections
The UK 100 is toying with a breakout at 6100 to clear the first hurdle of a recovery rebound from 6050 May lows. Note the 4-hourly RSI recovering from oversold, but very limited progress by the index beyond 6100 thus far. A break of 6050 could open the door to a fallback to 6000, 5900 and 5850.
Watch levels: Bullish 6110, Bearish 6075
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 bounced back above 9700 but already found resistance at what is likely now support-turned-resistance at 9775 following the late Friday breakdown. Is a breakout possible, or is this merely a pause before another downleg towards 9500? Note the 4-hourly RSI oversold like the UK Index .
Watch levels: Bullish 9815, Bearish 9675
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 made a bullish bounce from 3-week rising lows at 17800 which puts it in a rising channel that could take it back to 18000. Any breakdown would likely see a revisit of June lows around 17700.
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 continues to benefit from risk aversion with support at $1280 amid a strong uptrend towards 2016 highs of $1305. Safehaven seeking trumping a strong US dollar. A break of $1280 could jeapordise the uptrend.
Watch levels: Bullish $1286, Bearish $1275
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