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Index Focus - 24 July 2017

Equities have made a poor start to the week, sentiment weighed upon by a host of drivers. The IMF has cut growth forecasts for the UK and US. The EUR remains strong, adding to German auto collusion claims. White House uncertainty persists. An OPEC/NOPEC production cut meeting is underway. A Fed policy update looms large and we are right in the midst of a hitherto mixed earnings season.

The UK  UK 100  underperforms amid general weakness, especially amongst oil majors (production cut uncertainty, GBP strength), Miners & Financials (IMF forecast cuts) and defensives (GBP strength), versus extremely limited assistance from BATS and RR. Germany’s DAX fares better than the UK Index , but still underwater on Auto sector losses and EUR strength.

The UK Index 100 has broken below 7430 and pretty much completed the bearish H&S top reversal we highlighted this morning. The DAX 30 has fallen to within 100pts of 12-month rising support and its 200-day moving average at 12080. Dow Jones Futures are flat around 21550. Gold is back challenging late June resistance at $1258.

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Where next?
  1. Will the index fall towards lows of 7300? or;
  2. Will the index rise towards highs of 7600?

The UK Index 100 has broken below 7430 and pretty much completed the bearish H&S top reversal we highlighted this morning.

  • Watch levels: Bullish 7400, Bearish 7360

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 7370, 7360, 7340, 7300
  • Potential resistance: 7400, 7430, 7460, 7500

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 9,165? or;
  2. Will the index rise towards highs of 12,950?

The DAX 30 has fallen to within 100pts of 12-month rising support and its 200-day moving average at 12080.

  • Watch levels: Bullish 12180, Bearish 12140

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 12160, 12140, 12100, 12000
  • Potential resistance: 12180, 12220, 12250, 12260

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 21,275? or;
  2. Will the index rise towards highs of 21,685?

Dow Jones Futures are flat around 21550

  • Watch levels: Bullish 21,560; Bearish 21,530

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 21540, 21530, 21520, 21500, 21465, 21450, 21400
  • Potential resistance: 21560, 21570, 21580, 21590, 21620, 21640, 21675

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 $1,205? or;
  2. Will Gold rise towards highs of $1,295?

Gold is back challenging late June resistance at $1258. Bullish flag to above $1260?

  • Watch levels: Bullish $1259, Bearish $1252

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1252, 1250, 1248, 1245, 1236
  • Potential resistance: 1258, 1260, 1270, 1280, 1295

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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