Events over the past two weeks have rudely awakened financial markets from their Summer lull. The first risk-off move came after threats of a North Korean missile attack on Guam, while the second as President Trump’s business councils were disbanded.

However, far from ridding investors of the potential to profit from summer markets, these exciting two weeks have exposed a wealth of attractive tradeable opportunities. Here’s why:

US stock markets have been on a phenomenal run since Trump’s election back in November. The Dow Jones Industrial Average, one of the most closely followed indices in the world, rallied over 38% to its all-time high after the election.

But yesterday, the long term support underpinning the US rally came to an end while the Relative Strength Index (RSI) has dipped below 50 for the first time since May.

Far from killing it, the past two weeks have reignited the Trump trade.

Over the past 9 months, investors have found themselves in a quandry; the decision boiled down to whether to invest in a market already posting significant gains or take a risk by deciding the market has reached a top.

Now, however, investors once again have the opportunity to trade what’s in front of them, offering them the opportunity to trade signals after 9-months of monotonous growth, while also making any policy announcement from the administration more poignant than ever.

The same principle also applies to the UK 100 after being forced into a false sense of security over the past few months. The index had been trading in a tight 300 point or 4.1% range since the general election, showing little sign of excitement.

However, the moves of the past two weeks seen fresh 6-week lows touched twice, but also the opportunity to use technical analysis to identify interesting trading levels on the way back up.

Fibonacci levels, a popular analytical tool that highlights significant levels when comparing previous highs to its lows brought four key levels to the attention of traders this week.

Once Monday’s recovery rally had surpassed 23.6% of the distance from last week’s lows to its highs, at 7354pts, the breakout from the hurdle at 38.2% provided a sharp rally.

Whilst the 50% level was never quite tested – the index retreated from resistance at 7446 – each and every fiboncacci level on the way back down provided a notable signal that confirmed the failure of recoveries.

Now, with the index trading below its 200-day moving average for the first time since Trump’s election, investors can finally view the market with some excitement after months of tedium.

Ultimately, the the choice rests with you.

Do you see the UK 100 returning to all-time highs as Brexit negotiations restart? Perhaps the technical signals outweigh current events?

Whatever you think will happen next, it’s our job here at Accendo Markets to scour financial markets for analysis such as this so that our clients receive the very best insight in their inboxes daily. You too can sample just what made ADVFN choose us as their Best CFD Research Provider for 2017 by signing up to receive our research offering.

After the excitement of the past fortnight, I can’t wait to see what comes our way next week.

Have a great weekend,

Henry Croft, Research Analyst, 18 August