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Index Focus - 22 December 2016

Equity indices are trading around breakeven, having rebounded from overnight lows in an attempt to regain the highs of yesterday. Risk appetite remains hampered by thinner holiday trading into Christmas as well as talk of a Monte dei Paschi bailout taking a whopping 3-months to complete, taking us well beyond a supposed 31 Dec deadline for shoring up Italy’s knackered banks. An official announcement still eludes markets which understandably want clarity on the issue. UK Index helped by defensives (healthcare, consumer staples) rather than risky names (Miners, Banks).

The  UK 100  has broken beyond 24-hour falling highs to trade flat on the day at 7040. The DAX 30 is sideways within a tight 11435-11480 range holding 13-month highs. Dow Jones Futures have bounced from 19905 after retreating from yesterday’s second attempt at 20,000. Gold is oscillating $1131, with muted risk appetite also denting safehaven demand.

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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 has broken beyond 24-hour falling highs to trade flat on the day at 7040, however, it has already found a hurdle in 2-week support turned resistance which needs to be overcome to keep the Santa rally alive.

Watch levels: Bullish 7050, Bearish 7015

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 7030, 7018, 7010, 7000, 6995, 6985, 6980, 6930
  • Potential resistance: 7040, 7045, 7050, 7055, 7065, 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 11375? or;
  2. Will the index rise above highs of 11480?

The DAX 30 is sideways within a tight 11435-11480, holding 13-month highs, but progress hampered by a USD off its highs and thus EUR off its lows dampening demand for key exporter names.

Watch levels: Bullish 11485, Bearish 11430

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 11450, 11435, 11410, 11400, 11390, 11375
  • Potential resistance: 11470, 11480, 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 19985?

Dow Jones Futures have bounced from 19905 after retreating from yesterday’s second attempt at 20,000. Bounce or breakdown in Christmas?

Watch levels: Bullish 19955, Bearish 19915

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 19930, 19925, 19915, 19900, 19890, 19850 18825, 19800
  • Potential resistance: 19950, 19970, 19985, -

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 $1123? or;
  2. Will Gold rise towards highs of $1142?

Gold is oscillating $1131, with muted risk appetite also denting safehaven demand. 6-week downtrend undisturbed.

Watch levels: Bullish $1133, Bearish $1128

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 1130, 1128, 1126, 1124, 1123
  • Potential resistance: 1132, 1135, 1137, 1140, 1142

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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