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Index Focus - 23 February 2017

European equities are trading mixed again today as a decent results season continues, Eurozone politics heats up and the outlook for central bank policy is no clearer after Fed minutes which keep us guessing about US rate hike timing.

The UK’s UK 100 is essentially flat in spite of several big ex-dividends (HSBC, RIO, GSK, DGE, EZJ) and a slightly stronger Sterling. Buoyancy comes courtesy of positive results (GLEN, BARC, RSA, MNDI, BAE, INTU) and a tailwind for Lloyds, coupled with another oil price bounce helping the likes of BP and RDSb.

Germany’s DAX, on the other hand, is underperforming as consumer names Henkel and Bayer overpower strength in Infineon Tech and Volkswagen. Wall St is called to open flat this afternoon.

The UK 100  has bounces from 7280 for another bullish test of 7300. The DAX 30 looks to be in a bullish pennant around 12000. Dow Jones Futures are making good progress with the bullish flag we highlighted yesterday towards 21,200. Gold holds just below $1240 a step closer to a breakout that extends bullish flags towards $1280.

Click below to expand sections for more detailed analysis

Where next?
  1. Will the index fall towards lows of 7100? or;
  2. Will the index rise towards highs of 7360?

The UK 100 has bounced from 7280 for another bullish test of 7300. Feb uptrend alive and well. Can a breakout be engineered?

Watch levels: Bullish 7300, Bearish 7285

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7290, 7280, 7275, 7270, 7260, 7250, 7235, 7220, 7200
  • Potential resistance: 7300, 7305, 7310, 7315, 7325, 7340, 7365

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 11700? or;
  2. Will the index rise towards highs of 12030?

The DAX 30 looks to be in a bullish pennant around 12000 which could help it break higher and extend its gains towards April 2015 all time highs of 12400. USD off its highs hurting via reciprocal EUR strength.

Watch levels: Bullish 12005, Bearish 11975

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 11985, 11970, 11960, 11940, 11900, 11880
  • Potential resistance: 12000, 12015, 12020, 12035, 12070, 12235, 12400

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 19,700? or;
  2. Will the index rise towards highs of 21,000?

Dow Jones Futures are making good progress with the bullish flag we highlighted yesterday towards 21,200.

Watch levels: Bullish 20,800, Bearish 20,770

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 20780, 20886, 20765, 20755, 20745, 20730, 20710, 20690
  • Potential resistance: 20790, 20795, 20800, -

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 $1,120? or;
  2. Will Gold rise towards highs of $1,280?

Gold holds just below $1240 – buoyed by a weaker US Dollar – a step closer to a breakout that extends bullish flags towards $1280.

Watch levels: Bullish $1240, Bearish $1235

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1237, 1236, 1232, 1228, 1226, 1224, 1217, 1215
  • Potential resistance: 1239.5, 1240, 1242, 1244, 1245, 1252, 1260, 1280

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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