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Index Focus - 6 July 2016

Equity markets are nursing losses this morning as traders revert to worrying about the fallout from Brexit. This after a trio of large UK property funds pulled down the shutters and suspended redemptions in the face of investor panic linked to concerns about a residential and commercial property market downturn (a self fulfilling prophecy if you force them to sell property, n’est-ce pas?). Banks are also suffering from a negative read-across and contagion-concerns linked to Italian banks being in trouble. And this follows a down day in Asia as sterling plumbed 31yr lows and safe haven seeking resumed with gusto to send sovereign debt to fresh record lows, the Japanese Yen back towards recent highs and gold to its best in 2yrs.

The UK 100 has broken below overnight lows of 6510 to test 6500 and the floor of a sideways channel. Bounce or breach?  The DAX30 is posting a 4hr bearish engulfing candle as we write. After breaking below 6400 is it going all the way back to 9200? Wall Street/Dow Jones futures have retraced early gains to revisit 17750 overnight lows holding a 3-day reversal downtrend. But is rising support lurking? Gold is holding around the fresh $1371 2yr highs posted overnight. Bullish flag readying for another break higher?

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Where next?
  1. Will the index fall towards lows of 6470? or;
  2. Will the index rise above highs of 6620?

The UK 100  has broken below overnight lows of 6510 to test 6500 and the floor of a sideways channel. Bounce or breach?

Watch levels: Bullish 6525, Bearish 6495

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 6500, 6490, 6470
  • Potential resistance: 6510, 6520, 6525

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 9200? or;
  2. Will the index rise towards highs of 10480?

The DAX30 is posting a 4hr bearish engulfing candle as we write. After breaking below 6400 is it headed all the way back to 9200?

Watch levels: Bullish 9390, Bearish 9325

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 9350, 9335, 9300
  • Potential resistance: 9380, 9400, 9420

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 17060? or;
  2. Will the index rise towards highs of 18130?

Wall Street/Dow Jones futures have retraced early gains to revisit 17750 overnight lows holding a 3-day reversal downtrend. But is rising support lurking? Like the UK Index – bounce or breach?

Watch levels: Bullish 17785, Bearish 17835

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 17760, 17750, 17740
  • Potential resistance: 17770, 17780, 17800

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 $1338? or;
  2. Will Gold rise above highs of $1371?

Gold is holding around the fresh $1371 2yr highs posted overnight. Bullish flag readying for a breakout and another leg higher?

Watch levels: Bullish $1372, Bearish $1360

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1370, 1368.7, 1366
  • Potential resistance: 1371, 1380, 1393

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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