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Index Focus - 19 December 2016

Equities are posting small gains early into the new week, investors eager to keep fuelling the fire of an already strong Santa Rally (4-10%), trying to get the UK Index  back towards October 7135 all-time highs, the DAX to fresh 12-month highs >11450 and Wall St to that magic 20,000 mark. Corporate news may be sparse as we head into Christmas, but geopolitics is back with Sino-American relations tested over the weekend. Investors also continue to digest a hawkish Fed and the potential damage that further USD strengthening could inflict on emerging markets. Commodities ex-oil and Miners are weak as a result whilst there is caution towards banks as we await the outcome of a last ditch attempt to rescue beleaguered Italian lender Monte dei Paschi.

The  UK 100  is testing 7000, still holding rising support at 6990. The DAX 30 is holding its December uptrend at 14000, trying to extend its current breakout to fresh 13-month highs. Dow Jones Futures are sideways around 19885, up from Friday’s lows but note falling highs since last Thursday’s all-time highs. Gold has bounced but already found resistance at $1140 to keep its 6-week downtrend on track.

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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 testing 7000, still holding rising support at 6990. Narrow range. Bullish continuation pattern?

Watch levels: Bullish 7015, Bearish 6975

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend to sideways pause
  • Potential support: 6995, 6985, 6980, 6960, 6940, 6930, 6900, 6870
  • Potential resistance: 7010, 701, 7030, 7040, 7065, 7100, 7135

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 11450?

The DAX 30 is holding its December uptrend at 14000, trying to extend its current breakout to fresh 13-month highs.

Watch levels: Bullish 11440, Bearish 11370

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend to sideways pause
  • Potential support: 11400, 11380, 11360, 11340, 11280, 11220
  • Potential resistance: 11420, 11440, 11450, 11600

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 19830? or;
  2. Will the index rise towards highs of 19920?

Dow Jones Futures are sideways around 19885, up from Friday’s lows but note falling highs since last Thursday’s all-time highs.

Watch levels: Bullish 19900, Bearish 19875

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 19880, 19860, 19830, 19810,
  • Potential resistance: 19895, 19900, 19920, 19950,

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 $1233?

Gold has bounced but already found resistance at $1140 to keep its 6-week downtrend on track.

Watch levels: Bullish $1141, Bearish $1136

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 1133, 1128, 1125, 1122, 1120, 1100
  • Potential resistance: 1139, 1140.5, 1143, 1145, 1150, 1155

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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