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Index Focus - 3 January 2017

Equities are making a very positive start to 2017, building on December rallies. Investors have clearly retained their pre-Christmas bullishness, preferring to focus to the positives rather than dwell on political uncertainty. Kuwaiti confirmation of oil production cuts bodes well for the OPEC-led deal as does buoyancy for metals prices in spite of USD strength. The latter is providing a helping hand to the UK Index via reciprocal GBP weakness with Financials, Telecoms and Oil driving the UK blue-chip index to offset lagging defensives. DAX underperforming with Deutsche Bank losses hindering gains among Autos.

The  UK 100  is back from its test of 7200 but still holds above the 7160 overnight breakout. The DAX 30 has broken above 11550 to trade 17-month highs of 11600. Dow Jones Futures look to be in the midst of a bullish inverse Head & Shoulders reversal  to 20,000 or better. Gold has broken back below $1150 but is holding rising support at $1147 so far.

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Where next?
  1. Will the index fall towards lows of 7,060? or;
  2. Will the index rise towards highs of 7,205?

The UK 100 is back from its New Year test of 7200 but still holds above the 7160 overnight breakout. Bounce? Daily RSI overbought.

Watch levels: Bullish 7175, Bearish 7145

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7160, 7150, 7120, 7090, 7075, 7060
  • Potential resistance: 7170,. 7190, 7205, -

Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.

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Where next?
  1. Will the index fall towards lows of 8,740? or;
  2. Will the index rise towards highs of 12,400?

The DAX 30 has broken above 11550 to trade 17-month highs of 11600. Can it rally back to all-time highs of 12400 thanks to a weaker EUR? Like the UK Index , daily RSI overbought .

Watch levels: Bullish 11620, Bearish 11575

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 11600, 11590, 11580, 11565, 11540, 11500, 11480
  • Potential resistance: 11610, 11615, 11625, 11640, 11645, 11670, 11785

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 19,100? or;
  2. Will the index rise towards highs of 2,0000?

Dow Jones Futures look to be in the midst of a bullish inverse Head & Shoulders reversal to 20,000 or better.

Watch levels: Bullish 19915, Bearish 19875

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 19885, 19875, 19860, 19850, 19815, 19800, 19750, 19720
  • Potential resistance: 19905, 19908, 19920, 19935, 19940, 19960, 19980, 19988

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 towards lows of $1,123? or;
  2. Will Gold rise towards highs of $1,165?

Gold has broken back below $1150 but is holding rising support at $1147 so far. Strong USD a hindrance.

Watch levels: Bullish $1151, Bearish $1145

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1147, 1145, 1140, 1137, 1135, 1132, 1130, 1128
  • Potential resistance: 1150, 1155, 1159, 1163, 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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