This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Markets across the globe have been trading weaker this morning after Chinese factory data slumped to its lowest level in 6 years. Also playing a big part in the direction of the UK 100 is the Scottish Independence vote on Thursday, with various polls over the weekend giving different outcomes, with leads to both Yes and No votes. Tensions are also growing in Iraq and Syria with the killing of a British aid worker over the weekend signaled concerns that the UK may step up their military efforts against IS.
The UK’s UK 100 is trading at a support level of 6780, a level that it failed to convincingly break last week. Will today be any different? A convincing break below could see the UK Index trade down towards 6750 with resistance on the upside likely at 6800 and then at the 200 day MA around 6835.
Germany’s DAX found support at the 1 month rising trend line this morning before recovering some 40 points. A break below this support line could see the Dax back in the 9400’s, however, if resistance to the upside at 9660 is broken then a push towards last weeks highs of 9800 could happen.
The US Dow Jones has finally broken out of the range it had been trading in for the past two weeks. Will this break be sustained? If so a drop back towards 16800’s could be on the cards. Many traders will be looking towards the results of the FOMC meeting on Wednesday to gauge the likely hood of a rate rise happening sooner rather than later. Support may now turn resistance at 17000.
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