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Index Focus – 16 Oct - 16 October 2014

Global markets continued their roller-coaster trading session yesterday as they plunged heavily  into the red.  Weaker than expected US macro data heightened global growth concerns, whilst the German government said that they are not considering lifting sanctions against Russia. Equities also played their part in the market free fall with the drugmaker’s falling on M&A concerns.

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Where next?
  1. Will the index rise towards highs of 6906? or;
  2. Will the index fall below lows of 6008?

The UK’s UK 100  has managed to get back above support that was briefly broken yesterday as it set a new year low. Should this level be broken again today we could see the UK Index head towards 16 month lows around 6000. Resistance may be felt at 6316 and again around 6400.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways, Correction
  • Potential support: 6242, 6107, 5997
  • Potential resistance: 6316, 6400, 6500

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 rise towards highs of 10000? or;
  2. Will the index fall below lows of 8100?

Germany’s DAX found support at year lows yesterday before regaining around 100 points. Resistance may come at 8690 and again at 8894 before we see any attempt to head back into the 9000’s. Should support at year lows fail to hold then 8250 could be the next stop. The RSI has also returned to oversold territory.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways, Correction
  • Potential support: 8480, 8415, 8255
  • Potential resistance: 8690, 8894, 9018

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 rise towards highs of 17366? or;
  2. Will the index fall below lows of 15800?

The US Dow Jones hit an 8 month low yesterday in an extremely volatile trading session that saw it briefly trade below 16000 for the first time since February. Volatility is causing extraordinary intraday moves with the Dow swinging in the region of 500 points yesterday. The RSI has moved into oversold territory for the yesterday for the first time since early August.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways, Correction
  • Potential support: 16000, 15812, 15550
  • Potential resistance: 16372, 16697, 16902

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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