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Index Focus - 20 December 2016

Equity indices are trading flat on another sombre post-terror attack day with markets shrugging off renewed geopolitical risk and Travel stocks not suffering usual knee-jerk weakness. The UK 100 is treading water with Lloyds (MBNA purchase offers growth potential) and big Pharma offsetting losses for HSBC, Oil majors and Tobacco despite the weak GBP. Major bourses remain close to highs, but may struggle to improve without a Monte dei Paschi recap/rescue in the bag.

The  UK 100  is sideways 6995-7020, waiting to pop one way or the other. The DAX 30 is holding its December uptrend above 14000, still trying to engineer a breakout to fresh 13-month highs. Dow Jones Futures are knocking at 19920 resistance trying to challenge 19965 all-time highs. Gold turned back from $1140 to resume downtrend 6-week downtrend channel.

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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 6995-7020, waiting to pop one way or the other as it consolidates at the top of its December Santa rally uptrend.

Watch levels: Bullish 7025, Bearish 6985

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 7000, 6995, 6990, 6980, 6960, 6940, 6930, 6900
  • Potential resistance: 7020, 7030, 7040, 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 11160? or;
  2. Will the index rise towards highs of 11450?

The DAX 30 is holding its December uptrend above 14000, still trying to engineer a breakout to fresh 13-month highs.

Watch levels: Bullish 11440, Bearish 11410

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 11420, 11400, 11380, 11340, 11320, 11280, 11220
  • Potential resistance: 11440, 11455, 11500, 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 19750? or;
  2. Will the index rise towards highs of 19965?

Dow Jones Futures are knocking at 19920 resistance trying to challenge 19965 all-time highs. Can it make 20,000 before year-end?

Watch levels: Bullish 19925, Bearish 19875

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 19900, 19890, 19880, 19860, 19820, 19800, 19750
  • Potential resistance: 19920, 19960, -

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 $1340?

Gold turned back from $1140 to resume downtrend 6-week downtrend channel hampered by fresh USD strength.

Watch levels: Bullish $1135, Bearish $1131

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 1132, 1128, 1126, 1123, 1110, 1100
  • Potential resistance: 1134, 1135, 1136, 1137, 1140, 1142, 1150, 1155, 1165

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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