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Index Focus - 16 December 2016

Equities are pretty flat into the week-end digesting an exciting round trip since Monday driven by; 1) optimism turned scepticism about oil production cuts; 2) fears turned hopes regarding Italian banks recapitalisation, and; 3) a hawkish Fed outlook and accompanying USD strength helping US and European bourses to take another leg higher via reciprocal GBP and EUR weakness. A backtrack in oil prices is dampening sentiment this morning, along with dollar-denominated commodities and miners hampered by USD Index strength (14yr highs) but stateside bullishness, the Dow Jones so close to 20, 000 and a Santa Rally season in full flow is difficult to ignore.

The  UK 100  is sideways around 6995, deciding whether to continue yesterday’s rally or retrace. The DAX 30 is hovering above 11360 waiting for rising support to kick back in. Dow Jones Futures holding above 19860 but with falling highs since the European open. Gold is testing $1135 resistance amid a recovery from the Fed-inspired sell. Breakout?

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Where next?
  1. Will the index fall towards lows of 6870 or;
  2. Will the index rise towards highs of 7065?

The UK 100 is sideways around 6995, deciding whether to continue yesterday’s rally towards 7130 all-time highs or retrace towards longer-term rising support at 6960.

Watch levels: Bullish 7015, Bearish 6975

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 6995, 6992, 6980, 9690, 6940, 6930, 6900, 6970
  • Potential resistance: 7000, 7005, 7010, 7020, 7065

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 fall towards lows of 11220? or;
  2. Will the index rise towards highs of 11400?

The DAX 30 is hovering above 11360 waiting for rising support to kick back in to help the index towards another test of 111400 and late 2015 highs of 11430.

Watch levels: Bullish 11380, Bearish 11350

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 11360, 11340, 11280, 11250, 11220
  • Potential resistance: 11370, 11380, 11390, 11400, 11430

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 fall towards lows of 19100? or;
  2. Will the index rise towards highs of 19955?

Dow Jones Futures holding above 19860 but with falling highs since the European open.Bounce or breakdown?

Watch levels: Bullish 19890, Bearish 19850

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 19860, 19850, 19840, 19830, 19800, 19750, 19650, 19600
  • Potential resistance: 19875, 19885, 19915, 19950, 19965, -

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 Gold fall below lows of $1122? or;
  2. Will Gold rise towards highs of $1165?

Gold is testing 1135 resistance amid a recovery from the Fed-inspired sell. Breakout?

Watch levels: Bullish $1137, Bearish $1132

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1133, 1132, 1130, 1127, 1125, 1122
  • Potential resistance: 1136, 1139, 1140, 1144

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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