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Index Focus - 18 October 2016

Equities are pointing north again today, buoyed by Fed rate hike uncertainty taking the USD from its highs. This, along with positive UK inflation data, is is helping materials prices – notably Brent Crude oil holding above $51 – and thus Energy/Miners, as well as financials and a selection of big internationally-focused and high-yielding defensives. Markets appear optimistic going into risk events including tonight’s China GDP growth update, Wednesday’s final Trump vs Clinton debate and Thursday’s ECB policy decision. Note the GBP regaining poise versus USD after last week’s  ‘mare.

The UK Index 100 is back above 7000, building on its bounce from 6950 to maintain the post-Brexit uptrend. Back to the highs? The DAX 30 is in the midst of a bullish flag back to its 2-month ceiling at 10675. Can it finally break higher? Dow Jones Futures have rallied back to the mid-point of their 17950-18350 narrowing range. Gold is adding to its rebound from $1250. Potential for triple-bottom back to $1280.

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Where next?
  1. Will the index fall towards lows of 6640? or;
  2. Will the index rise towards highs of 7131?

The UK 100 is back above 7000, building on its bounce from 6950 to maintain the post-Brexit uptrend. Back to the highs?

Watch levels: Bullish 7030, Bearish 6995

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7015, 7000, 6980, 6960, 6940, 6930
  • Potential resistance: 7025, 7055, 7080, 7090, 7130

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 10185? or;
  2. Will the index rise towards highs of 10775?

The DAX 30 is in the midst of a bullish flag back to its 2-month ceiling at 10675. Can it finally break higher?

Watch levels: Bullish 10690, Bearish 10585

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 10610, 10600, 10580, 10570, 10550, 10540, 10530
  • Potential resistance: 10635, 10650, 10695, 10705, 10750, 10775

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 fall towards lows of 17900? or;
  2. Will the index rise towards highs of 18650?

Dow Jones Futures have rallied back to the mid-point of their 17950-18350 narrowing range

Watch levels: Bullish 18180, Bearish 18150

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 18160, 18140, 18120, 18100, 18080, 18060
  • Potential resistance: 18175, 18200, 18215, 18265, 18300, 18335

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 $1240? or;
  2. Will Gold rise towards highs of $1360?

Gold is adding to its rebound from $1250. Falling highs overcome. Potential for triple-bottom back to $1280.

Watch levels: Bullish $1266, Bearish $1258

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1261, 1260, 1258, 1257, 1254, 1250
  • Potential resistance: 1264, 1270, 1277, 1280, 1290, 1300

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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