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Index Focus - 30 March 2017

Global equities are mixed again this morning with small gains for Europe at odds with minor losses on Wall Street. Markets have clearly calmed after all that mid-week excitement. Foreign exchange markets remain in focus after the UK’s official triggering of Article 50, although with details of the negotiating hands of both parties still sparse, market movement is minimal at best.

The UK’s UK 100  is flat as the Oil price rebound (BP, RDSb) and gains for GSK (US healthcare optimism), Imperial Brands (reiterated guidance) and Ashtead (Trump pro-coal executive order + infrastructure spending hopes) lead the bullish charge. This offsets a drag from Prudential and Schroders (both ex-div), and a handful of defensives including BT & VOD (technical resistance), heavyweights ULVR & BATS, and SSE  after its trading update.

Germany’s DAX is positive with Merck the only standout performer among general strength, offsetting 1 and 4% losses for Deutsche Bank and Daimler respectively.

The UK Index 100 is falling back from 1-week rising highs resistance at 7380 as the US dollar rally pauses for breath. The DAX 30 has yet to overcome emergent resistance just below 12250. Dow Jones Futures are continuing the retracement from 20,700 2-week highs. Gold is developing a narrowing pattern as falling highs resistance at $1252 meets rising lows support at $1249.

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Where next?
  1. Will the index fall towards lows of 7260? or;
  2. Will the index rise towards highs of 7448?

The UK Index 100 is falling back from 1-week rising highs resistance at 7380 as the US dollar rally pauses for breath. Note developing RSI negative divergence.

Watch levels: Bullish 7390, Bearish 7360

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7365, 7350, 7340, 7325, 7320, 7300
  • Potential resistance: 7380, 7400, 7420, 7430, 7440

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 11,850? or;
  2. Will the index rise towards highs of 12,235?

The DAX 30 has yet to overcome emergent resistance just below 12250, while RSI recovers from overbought.

Watch levels: Bullish 12240, Bearish 12195

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 12210, 12200, 12185, 12165, 12140, 12100
  • Potential resistance: 12220, 12235, 12240, 12250

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 20,400? or;
  2. Will the index rise towards highs of 20,900?

Dow Jones Futures continue to fall back from 20,700 2-week highs.

Watch levels: Bullish 20,665, Bearish 20,625

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 20640, 20620, 20600, 20540, 20520
  • Potential resistance: 20660, 20680, 20700, 20720, 20735, 20750

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 $1,242? or;
  2. Will Gold rise towards highs of $1,261?

Gold is developing a narrowing pattern as falling highs resistance at $1252 meets rising lows support at $1249. Break higher or lower? Watch USD.

Watch levels: Bullish $1253, Bearish $1248

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 1250, 1249, 1248, 1246, 1244, 1241
  • Potential resistance: 1252, 1254, 1255, 1256, 1258, 1260, 1261

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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