This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equities have resumed their northerly march with a return of the old ‘bad news is good news’ helping indices attempt another leg higher at this early stage of the new trading week. A poor Japanese GDP print adds to disappointing US and China data last week and to concerns about global growth. It also piles pressure on the BoJ to deliver the goods next month to compound Tokyo’s chunky fiscal pledge. This implies the easy policy (low/negative rates + stimulus) that equity markets love being prolonged. The ECB is less than three weeks from deciding what to do now the BoE has fired its bazooka. The Fed looks ironically hamstrung from another rate hike by peer action and Chinese equities are rallying this morning on hopes of more PBOC stimulus.
The UK 100 has broken above last week’s highs to hold its uptrend of rising lows from 4 Aug with multiple support at 6900. The DAX 30 looks headed for 11000 to continue its uptrend after the recent bullish breakout at 10500. Dow Jones futures are again flirting with record highs, although still in a potential bearish rising wedge. Gold looks to be in a new narrowing pattern after bouncing at $1335.
Click below to expand sections
The UK 100 is holding its uptrend of rising lows from 4 Aug with multiple support at 6900 and a breakout above last week’s highs of 6930.
Watch levels: Bullish 6950, Bearish 6925
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 DAX 30 looks headed for 11000 to continue its uptrend after the recent bullish breakout at 10500. Not the RSI overbought but not yet turned back.
Watch levels: Bullish 10815 Bearish 10770
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
Dow Jones futures are again up close to all time highs with a bearish rising wedge pattern reinforcing the likelihood of a pullback from resistance thereabouts.
Watch levels: Bullish 18640, Bearish 18505
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 looks to be in a new narrowing pattern after bouncing at $1335. Bullish pennant? Or H&S top waiting for breakdown?
Watch levels: Bullish $1343, Bearish $1333
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