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Index Focus - 3 February 2017

Major equity indices are positive today with the UK UK 100 outperforming thanks to GBP/USD weakness flattering the value components’ international profits. Miners may be hindering on account of weak metals prices (blame a strong USD) but Crude is holding up well to help the oil majors while Healthcare, Defensives and Financials all offer additional help.

GBP has fallen to fresh Feb lows on a weak PMI Services print but it is also pressured by a USD rebound in the run-up to a US Non-Farm Payrolls (NFP) jobs report that could surprise to the upside (ADP did on Weds), pressuring the Fed to hike again soon. Germany’s DAX is flat with EUR/USD holding up well and Utilities weakness offsetting Autos strength. Dow Jones futures muted before NFP.

The UK 100  is in the midst of a break beyond the 7165 ceiling of a 2-week channel. The DAX 30 is still trying to break beyond falling highs at 11650. Dow Jones Futures face fresh falling highs resistance at 19920. Gold may have pulled back below $1220 but remains in a 1-week uptrend.

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Where next?
  1. Will the index fall towards lows of 7090? or;
  2. Will the index rise above highs of 7260?

The UK 100 is in the midst of a break beyond the 7165 ceiling of a 2-week channel. Is this the turnaround Bulls have been looking for?

Watch levels: Bullish 7185, Bearish 7145

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7160, 7150, 7130, 7110, 7090
  • Potential resistance: 7180, 7185, 7195, 7205, 7220, 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 11510? or;
  2. Will the index rise above highs of 11885?

The DAX 30 is still trying to break beyond falling highs at 111650. Convincing enough for the Bulls hoping for a recovery rally?

Watch levels: Bullish 11685, Bearish 11600

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 11620, 11610, 11600, 11585, 11550, 11535, 11510
  • Potential resistance: 11660, 11675, 11700, 11720, 11735, 11760, 11780

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 19,675? or;
  2. Will the index rise towards highs of 20,140?

Dow Jones Futures face fresh falling highs resistance at 19920. Can 20,000 be regained?

Watch levels: Bullish 19,930, Bearish 19,890

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 19900, 19890, 19880,19855, 19840, 19820, 19810, 19875, 19750
  • Potential resistance: 19920, 19925, 19950, 199775, 20000, 20050, 20070, 20100, 20140

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 $1,180? or;
  2. Will Gold rise above highs of $1,225?

Gold may have pulled back below $1220 but is still in a 1-week uptrend. Another bounce to keep the up channel going? USD rally  hindrance run its course?

Watch levels: Bullish $1216, Bearish $1210

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1212, 1210, 1207, 1205, 1203, 1198
  • Potential resistance: 1215, 1217, 1220, 1225, 1230

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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