This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
UK Index , Dax & Dow all now in 2-week narrowing patterns, a break down from which could result in continuation of existing downtrends. Gold trading just off 3-week support base of bearish wedge pattern which could lead to another leg down amid a longer term downtrend.
Equities back positive this morning welcoming back Chinese bourses after a 2-day holiday from recent volatility (respite for us all) thanks to positive PBOC and G20 comments about the world’s #2 economy, even if trading remains jumpy (less state intervention?) and official China growth was downgraded (7.3% vs 7.4%) adding fuel to the fire about whether 2015 can deliver on the 7.0% target after FX devaluation (panic or reform?) resulted in major capital outflows ($94bn in Aug; largest ever).
Jury still out on Friday’s US Jobs report and what the Fed will elect to do next week (hike or hold? We say hold fire; inflation still too low, markets still too jumpy) and markets appear to have forgotten about Draghi’s ‘still prepared to do whatever it takes‘ brief rally-inducing comments last week in the face of multiple downside risks: China growth, deflation, market volatility. New week, new focus.
Click below to expand sections
UK 100 now technically in narrowing pattern 6000-6200. A breakdown from this could lead to continuation of accelerated downtrend from 11 Aug. Rising lows from 5770 still valid but break above 6260 likely needed to convince of potential for bullish recovery.
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
Germany’s DAX now technically in symmetrical triangle pattern 10000-10370. A breakdown from this could lead to continuation of accelerated downtrend from 10 Aug while a breakout could be pre-cursor to recovery towards 11600.
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
US Dow Jones futures now technically in converging pattern 16050-16450. A breakdown from this could lead to continuation of accelerated downtrend from 18 Aug while a breakout could be pre-cursor to recovery towards 1740. Like the UK Index , Rising lows from 23 Aug still valid but break above 16710 likely needed to convince of bullish recovery potential.
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
Gold trading around the base of a bearish descending triangle pattern a break down from which could lead to a revisit of 2015 lows, although $1116 has proved supportive for 3 weeks now. Can it manage a fourth and help with a break higher above falling highs?
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