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Index Focus - 10 January 2017

Equities are mostly positive this morning as US Dollar weakness is helping a broad commodity space rally, however gains are being capped as reciprocal GBP/EUR weakness is holding back the UK Index ‘s buck-denominated earner’s and the export-heavy German DAX. UK supermarket industry data is providing a welcome boost to Retailers, reversing the sector’s negative start to 2017 and helping the UK Index to a fresh all-time high shortly after the market open whilst crude oil prices are finding some support, helping to stem downward pressure on indices following yesterday’s sharp sell-off. With a lack of macro data and speakers today, all eyes will be firmly focused on tomorrow’s upcoming ‘general news’ conference from Donald Trump for any indication of which potential policies will be pushed with only 10 days left until the President-elect’s inauguration.

The UK 100  is mounting a fresh challenge after posting an early all time high of 7262.9 having held steady above 7245. The DAX 30 has also pared early gains having touched 11605 to rest on one-month rising lows support of 11555. Dow Jones Futures remain rather flat, unable to overcome one week falling highs resistance at 19915 having retreated further from 20000. Gold has fallen back slightly after reaching a one month high above $1187 in the early hours of this morning.

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Where next?
  1. Will the index fall towards lows of 7,180? or;
  2. Will the index rise towards highs of 7,260?

The UK 100  is mounting a fresh challenge after posting an early all time high of 7262.9 having held steady above 7245. Could fresh Sterling weakness see a 9th consecutive record closing high?

Watch levels: Bullish 7260, Bearish 7225

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7250, 7245, 7240, 7235, 7225, 7220
  • Potential resistance: 7260 -

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 11,400? or;
  2. Will the index rise towards highs of 11,645?

The DAX 30 has also pared early gains having touched 11605 to rest on one-month rising lows support of 11555. Could some Dollar strength provide bounce back to 11640 highs?

Watch levels: Bullish 11600, Bearish 11530

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 11560, 11550, 11540, 11530, 11460, 11420, 11400
  • Potential resistance: 11575, 11580, 11600, 11620, 11640, 11645, 11670

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 19,780? or;
  2. Will the index rise above highs of 20,000?

Dow Jones Futures remain rather flat, unable to overcome one week falling highs resistance at 19915 having retreated further from 20000. Will they fail to overcome resistance or bounce back to highs?

Watch levels: Bullish 19935, Bearish 198700

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 19900, 19860, 19830, 19810, 19780
  • Potential resistance: 19905, 19910, 19915, 19920, 19940, 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 towards lows of $1,125? or;
  2. Will Gold rise towards highs of $1,195?

Gold has fallen back slightly after reaching a one month high above $1187 in the early hours of this morning. Recovery from December lows remains intact.

Watch levels: Bullish $1188, Bearish $1175

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1183, 1180, 1179, 1177, 1175.5, 1173
  • Potential resistance: 1185, 1188, 1190, 1195, 1197, 1202

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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