This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
With last night’s 72-hour humanitarian Gaza ceasefire having already been ignored and some mixed macro data publications, global equities have resumed their southerly course, weighed down by myriad geopolitical/sovereign risk, the fact markets have turned down from recent highs and ahead of a US monthly jobs report which traders are worried could deliver more evidence/ammo for the US Federal Reserve to raise interest rates earlier than low-rates addicted markets are really comfortable with.
The UK’s UK 100 is testing rising support from February at 6670. Having fallen below this and now testing July lows of 6640, any further weakness could take us all the way to Mar-Apr lows of 6500. Thereafter, we’d be looking at 2014 lows of 6395 from Feb. Any close above the rising trend line, could help open the door to a recovery to recent 6835 highs. Note the daily RSI not yet oversold.
Germany’s DAX has made a definitive breakdown from its March uptrend and left the 200-day moving average fall behind at 9580. It too could correct all the way to 2014 lows, at 8910, although there is the possibility of support at April lows of 9085, especially with the daily RSI already oversold.
The US Dow Jones is trading like the German DAX having given up the 6-month uptrend, however in its favour it has potential support from the 200-day moving average 16450 which it is presently testing. Any breach of this could open up downside to round number 16000. Any good-news recovery offers upside to the 17000 region.
Click below to view graphs
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
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
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