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Index Focus - 18 August 2016

Equities are looking a little perkier this morning, albeit still in consolidation mode after hitting recent recovery highs. Investors appear to be interpreting last night’s inconclusive July Fed minutes (data still mixed, inflation muted and USD strong) as suggesting another US rate hike was not imminent and that easy policy – from a global standpoint – is here to stay. And whatever happens, the pace of any future US rate rises is almost certain to be very slow, especially while central banks do the polar opposite, printing money and cutting rates to kick start their own economies. So party on! Positive UK Retail Sales data from July adds to decent jobs numbers yesterday boosting sentiment by signalling no Brexit-induced consumer panic.

The UK 100 has found support at 6870 although remains in a downtrend since Monday’s highs. The DAX 30 is still managing to hold its July uptrend at 10570, but also remains in a downtrend for the week. Dow Jones futures remain in recovery mode from yesterday’s lows. A breakout at 18600 could ignite a very bullish signal. Gold’s narrowing trading range is unchanged at $1340-1355.

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Where next?
  1. Will the index fall towards lows of 6847? or;
  2. Will the index rise towards highs of 6955?

The UK 100 has found support at 6870 although remain in a downtrend since Monday’s highs.

Watch levels: Bullish 6885, Bearish 6865

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 6870, 6860, 6850, 6847, 6840, 6810
  • Potential resistance: 6880, 6890, 6900, 6920, 6940, 6955

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 9320? or;
  2. Will the index rise towards highs of 10800?

The DAX 30 is still managing to hold its July uptrend at 10570, but also remains in a downtrend for the week. Will it break higher or lower? Note the RSI recovery from oversold.

Watch levels: Bullish 10635, Bearish 10560

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 10580, 10570, 10560, 10540, 10515, 10480
  • Potential resistance: 10600, 10620, 10630, 10640, 10660, 10700, 10740

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 18467?

Dow Jones futures remain in recovery mode from yesterday’s lows, now in a shallow up-channel. A breakout at 18600 could ignite a very bullish signal – complex inverse head & shoulders reversal back to recent all-time highs and even beyond.

Watch levels: Bullish 18585, Bearish 18555

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 48567, 18560, 18540, 18520, 18500, 18480, 18470
  • Potential resistance: 18580, 18590, 18600, 18620, 18640, 18660, 18670

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’s narrowing trading range is unchanged $1340-1355. Will the safehaven and interest rate sensitive yellow metal eventually break to the north or south?

Watch levels: Bullish $1351, Bearish $1345

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 1346, 1344, 1342, 1340, 1335, 1333, 10330
  • Potential resistance: 1350, 1351, 1352, 1354, 1355, 1356, 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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