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Index Focus - 27 October 2016

Equity markets are in the red this morning in a particularly choppy trading session, earlier gains as a result of positive earnings reports from European financials being offset by a weakening USD on the back of better-than-expected UK GDP data for the third quarter. After an exciting hour, equities have once again settled back into business as usual, with a Crude Oil price rise this morning helping to buoy market sentiment after pessimistic trading overnight. Investors will be pricing in the impact of a barrage of US earnings data this afternoon, with 50 S&P companies reporting on the busiest day of releases so far this quarter.

The  UK 100  broke through two levels of falling highs resistance at 6940 and 6970 to momentarily break the 7000 point barrier in the run up to the GDP announcement, however now finds itself back at 6940 on account of strengthening GBP. Will it bounce once again and make a charge towards 7000? The Dax 30 also saw a spike on account of the strengthening USD pre-UK GDP release, however has since pared those gains and remains near support at 10650. Will ECB speakers later today provide further detail on monetary policy measures help spur a rally towards resistance at 10870? Dow Jones Futures spiked at 18245 resistance on account of Dollar strength although have since fallen. Will some strong earnings releases this afternoon see that resistance challenged and potentially broken on the way to 18300? Gold is in uptrend, bouncing overnight at $1265 rising lows support. Can it continue the trend to post 4-week highs today?

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

The UK 100  broke through two levels of falling highs resistance at 6940 and 6970 to momentarily break the 7000 point barrier in the run up to the GDP announcement, however now finds itself back at 6940 on account of strengthening GBP. Will it bounce once again and make a charge towards 7000?

Watch levels: Bullish 6970, Bearish 6935

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 6942, 6940, 6935, 6930, 6920, 6915
  • Potential resistance: 6950, 6960, 6965, 6970, 6975, 6980

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 also saw a spike on account of the strengthening USD pre-UK GDP release, however has since pared those gains and remains near support at 10650. Will ECB speakers later today provide further detail on monetary policy measures help spur a rally towards resistance at 10870?

Watch levels: Bullish 10750, Bearish 10640

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 10660, 10675, 10640, 10630, 10600,
  • Potential resistance: 10690, 10700, 10705, 10710, 10720, 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 spiked at 18245 resistance on account of Dollar strength although have since fallen. Will some strong earnings releases this afternoon see that resistance challenged and potentially broken on the way to 18300?

Watch levels: Bullish 18260, Bearish 18150

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 18190, 18185, 18180, 18170, 18160
  • Potential resistance: 18200, 18210, 18215, 18220, 18225, 18235

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 in uptrend, bouncing overnight at $1265 rising lows support. Can it continue the trend to post 4-week highs today?

Watch levels: Bullish $1280, Bearish $1261

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1268, 1265, 1262, 1260, 1258
  • Potential resistance: 1280, 1281, 1284, 1302, 1307

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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