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Index Focus - 17 August 2016

Equities are struggling again today despite a positive session in Asia that bucked a negative US close. Fears of hawkishness with July’s Fed minutes this evening sees markets cautious and resuming a trickle back from recent highs. Currency moves continue to dominant with a weak USD (in response to some dovish comment and muted data) keeping the trio of Yen, EUR and GBP all strong (to the detriment of equities) the latter getting additional help from solid UK jobs data compounding yesterday’s firmer inflation prints. Reversal of yesterday’s gains by Miners and this morning’s ADM results are weighing on the UK Index , offset by renewed demand for big defensives (BT takeover speculation) EUR strength still hurting the DAX.

The UK 100 has broken below a duo of rising support to test 4-day lows of 6880. The DAX 30 has found support at 10580, but could the sell-off continue to 10480? Dow Jones futures continue their retreat from Monday’s all-time highs. Support at 18500, or all the way to 18300? Gold is holding above rising support at $1340 in a narrowing pattern, still hostage to USD moves in run-up to the Fed minutes this evening.

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Where next?
  1. Will the index fall towards lows of 6810? or;
  2. Will the index rise towards highs of 6955?

The UK 100 has broken below a duo of rising support to test 4-day lows of 6880. Downside possible to 6865 (recent breakout) and prior support (6810). New falling channel.

Watch levels: Bullish 6895, Bearish 6870

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 6880, 6877, 6865, 6840, 6810
  • Potential resistance: 6890, 6900, 6910, 6920, 6925, 6940

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 fall towards lows of 9200? or;
  2. Will the index rise towards highs of 10800?

The DAX 30 sell-off from 14-month falling-highs resistance at 10800 has found support at 10580, but could the sell-off continue to 10480? RSI still not technically oversold.

Watch levels: Bullish 10620, Bearish 10570

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 10600, 10580, 10575, 10500, 10480, 10450, 10410
  • Potential resistance: 10608, 10620, 10640, 10660, 10680, 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 rise towards highs of 18670? or;
  2. Will the index fall towards lows of 17070?

Dow Jones futures continue their retreat from Monday’s all-time highs. Support at 18500, or all the way to 4-month intersecting support at 18315?

Watch levels: Bullish 18550, Bearish 18515

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 18530, 18525, 18520, 18505, 18500, 18480, 18465
  • Potential resistance: 18540, 18550, 18560, 18570, 18580, 18590, 18600, 18615

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 $1310? or;
  2. Will Gold rise towards highs of $1375?

Gold is holding above rising support at $1340 in a narrowing pattern, still hostage to USD moves in run-up to the Fed minutes this evening.

Watch levels: Bullish $1347, Bearish $1337

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1342, 1341, 1340, 1338, 1335, 1330, 1325, 1310
  • Potential resistance: 1344, 1345, 1346, 1348, 1350, 1352, 1355, 1358, 1360

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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