This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equities are on the back foot this morning, following a weak session in Asia in which markets fretted about further monetary easing by the Australian central bank. While this should be a boon for Aussie equities, the fact that the other major player in the region – Japan – is also chest deep in its own stimulus swamp could be having a negative impact on sentiment elsewhere in the world. Are we to see the RBA follow the BoJ into a black hole? Probably not, but we note Asia-focused mining stocks are currently weighing most heavily on the UK 100 . Oil major Royal Dutch Shell is doing the donkeywork to help cushion losses!
The UK 100 is testing rising support in its July rising wedge pattern, having failed to make it back to the ceiling around 6775 overnight. The DAX30 is taking a break from this morning’s declines around 9940. Dow Jones futures are off yesterday’s all-time highs, having broken below their rising trend line to find support at the 100-hour moving average. Gold‘s in a narrowing pattern, with a break above its 100-hour moving average encouraging for bulls looking for a breakout above 11-July falling highs.
Click below to expand sections
The UK 100 is testing 6660 and the floor of its rising wedge pattern, which could also be viewed as a somewhat lopsided bearish head & shoulders top. Note a failure to better 6700 overnight
Watch levels: Bullish 6720, Bearish 6640
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 taken a break from declines around 9940, with that potentially being consolidation ahead of another leg lower towards 9800. A bounce would need to clear 9965 and 9975 to have any hope of regaining 10000
Watch levels: Bullish 9970, Bearish 9900
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 are in a tight sideways range with the ceiling at recent all-time highs. A break back below 18400 may confirm a reversal, but right now the index is decidedly sideways!
Watch levels: Bullish 18570, Bearish 18390
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’s risen back to July falling highs having traded around $1325 support overnight. The hourly RSI is in bullish territory. Will gold breakout or pull back?
Watch levels: Bullish $1342, Bearish $1323
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