This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equities remain in consolidation mode, digesting recent gains and waiting for the balance of risk appetite to tip one way or the other. For now, we are hopeful that the Bulls will win out. After all, markets have held up extremely well, finely balanced over the last two sessions following a sharp run-up. A healthy undercurrent of bullish desire must surely be present to have kept us here (and the Bears at bay) or else we would have given up some of those gains.
Oil may be back below $50 but it remains in its 2016 reversal uptrend. Japanese and Chinese overnight data has spurred talk of more market-pleasing stimulus. Note afternoon trading could turn spicier, with US GDP and Consumer Confidence data having potential to sway market sentiment into the long weekend for UK and US markets.
Fed Chair Janet Yellen speaking after the European close also means long-weekend risk for those holding positions through Tuesday. Should we trade flat again into lunch, we remain open to possibility that a long weekend risk-off mentality creeps in towards the end of the day.
UK 100 holding 6245-6280 range, digesting gains before a potential breakout to 2016 highs of 6430. The DAX30 has found support at 10250 that could help it bounce and continue a bullish triple-bottom towards 2016 highs of 10500. Wall Street/Dow Jones futures still sideways 17800-17900, pausing after its reversal from 2-month lows and potnetially on its way back to 2016 highs 18160. The sell-off in Gold supports increased risk appetite, but support at $1210 could deliver a rebound?
Click below to expand sections
No change on the UK 100 , still in its 6245-6580 sideways range, consolidating recent gains. A break higher towards 6350 and 6430 via two bullish patterns is still possible.
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 DAX has eased back to 10250, but already found rising support that could helps it bounce and continue the bullish triple-bottom reversal towards 2016 highs of 10500.
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
Dow Jones futures still sideways 17800-17900, pausing after its reversal from 2-month lows and potnetial on its way back to 2016 highs 18160. A bullish flag rally to 18000 is still on the cards if we can satay above 17800, and get above 17900.
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 found support just above 3-month lows of $1210 which is support-turned-resistance going back to June 2015. This level could help deliver a reversal of the May downtrend if we can break beyond falling highs resistance.
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