This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equity markets are hovering just above breakeven as investors await the second round of Fed Chair Yellen’s Congressional interrogation, this time by the Senate Banking Committee. Oil has come off its weekly highs as IEA suggests OPEC members reopening the taps, compounding a higher and ever-rising US production. Commodities maintain a fingertip hold on gains inspired by earlier USD weakness and positive Chinese trade data overnight. Sterling is off its highs against the dollar, although it remains strong against the Euro, leaving the UK Index ‘s currency-sensitive names in limbo.
The UK 100 is engaged in a tug of war, with Financials (improved risk appetite), Telecoms (Ofcom BT-Openreach response), Glencore (extending breakout) and ULVR (EUR/USD weakness) being pitted against Pharma (AZN CEO defection?), Oil (global supply group), SGE (MCRO results read-across) and HSBA (remains strong). The DAX sees a rare situation where domestically focused stocks outperform exporters, with only Daimler (emissions cheating report) and Siemens markedly lower.
The UK Index 100 is holding above 7400 with potential for bullish triple bottom reversal complemented by a bullish flag towards 7500. The DAX 30 is in a broadening pattern just shy of 12650 that could take it 150 points either way. Dow Jones Futures has turned back from 21550 having failed to match yesterday’s fresh record high. Gold has failed to overcome June falling highs resistance at $1225 in a clear 5-week falling channel.
Click below to expand sections for more detailed analysis
The UK Index 100 has broken from 7400 with the potential bullish triple bottom reversal to 7480 joined by a bullish flag.
Solid Green line
Possible support
Solid Red line
Possible resistance
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
The DAX 30 is in a broadening pattern just shy of 12650 that could take it 150 points either way. Note 4-hourly RSI overbought
Solid Green line
Possible support
Solid Red line
Possible resistance
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
Dow Jones Futures has turned back from 21550 having failed to match yesterday’s fresh record high.
Solid Green line
Possible support
Solid Red line
Possible resistance
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
Gold has failed to overcome June falling highs resistance at $1225 in a clear 5-week falling channel.
Solid Green line
Possible support
Solid Red line
Possible resistance
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
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.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research