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Index Focus - 26 October 2016

Equities are on the backfoot across the board this morning  as decreasing crude oil prices, lacklustre third quarter earnings releases and a rare weakening of the US Dollar weigh on market sentiment. As OPEC’s already fragile promise to negotiate a production freeze deal in a month’s time looks to be falling apart (Russia may be getting cold feet while members still unable to agree who cuts to curb record production output), weak Q3 earnings from companies on both sides of the Atlantic are doing nothing to buoy investors. Meanwhile, the US Dollar Basket Index retreats from the 8-month highs reached yesterday around the time of the minor GBP crash, resulting in rallies in both the Sterling and Euro.

The  UK 100  has broken through several key support levels to find itself touching on one month lows as Miners (led by production forecast reducing Antofagasta) drag down the wider market. Could yet another bounce from 6940 support to the 7000 mark be on the cards? The Dax 30 was reaching 2016 highs this time yesterday, however is now testing support at 10650. Can the index recover losses this afternoon once US markets open? Dow Jones Futures complete the pessimistic outlook for equities as Apple records its first negative annual revenue growth since 2001, sending the index to the bottom of a one month narrowing pattern channel whilst also testing 2-week rising lows support at 18085. Gold on the other hand, is maintaining a breakout from a week long  $1260-$1268 trading channel, is a further breakout from $1277 resistance possible?

Where next?
  1. Will the index fall towards lows of 6930? or;
  2. Will the index rise towards highs of 7131?

The UK 100  has broken through several key support levels to find itself touching on one month lows as Miners drag down the wider market. Could yet another bounce from 6940 support to the 7000 mark be on the cards?

Watch levels: Bullish 6985, Bearish 6935

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 6940, 6935, 6930, 6920, 6915
  • Potential resistance: 6960, 6970, 6975, 6980, 6990, 7000

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 8690? or;
  2. Will the index rise above highs of 12350?

The Dax 30 was reaching 2016 highs this time yesterday, however is now testing support at 10650. Can the index recover losses this afternoon?

Watch levels: Bullish 10700, Bearish 10620

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 10640, 10630, 10600, 10550, 10500
  • Potential resistance: 10660, 10675, 10680, 10700, 10730

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 17950? or;
  2. Will the index rise towards highs of 18550?

Dow Jones Futures complete the pessimistic outlook for equities as Apple records its first negative annual revenue growth since 2001, sending the index to the bottom of a one month narrowing pattern channel, whilst also testing 2-week rising lows support at 18085.

Watch levels: Bullish 18160, Bearish 18065

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 18090, 18085, 18075, 18070, 18060
  • Potential resistance: 18100, 18110, 18115, 18120, 18130

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 $1353?

Gold is maintaining a breakout from a week long  $1260-$1268 trading channel, is a further breakout from $1277 resistance possible?

Watch levels: Bullish $1278, Bearish $1259

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1274, 1273, 1272, 1271, 1270, 1268
  • Potential resistance: 1276, 1277, 1281, 1284, 1302

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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