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Index Focus - 12 October 2017

European equities remain pretty flat into the second half of the week, even after more highs in the US and Asia. But this is excusable as investors digest a US Fed confused by absent inflation despite low unemployment. We are also no nearer clarity on Catalan independence with Spanish PM Rajoy giving separatist leader Puigdemont five days to clarify his call. If a catalyst is required, traders are likely looking to US banks to spice things up with earnings today through Tuesday.

The UK UK 100  is just positive, helped by defensives RB, ULVR, VOD & GSK, and Sky after its Q1 results. Holding us back are HSBC (ex-div), RDSb (IEA report on oil) and STAN (profit taking after IMF said the bank was vulnerable). The German DAX is flat as gains for Lufthansa (close to completing Air Berlin acquisition), Vonovia (Dovish Fed), Merck, Henkel and Deutsche Boerse are offset by losses for HeidelbergCement, Deutsche Bank (IMF said it was vulnerable), BMW (stronger EUR vs USD) and Infineon.

The UK Index 100 is on-track for a retest of recent 7555 resistance. Breakout towards 7600 record highs? The DAX 30 continues to test 12980 resistance. Breakout? Dow Jones Futures are narrowing into 22900 to complete a 1-month bullish flag. Gold’s rebound has again found resistance, this time at $1298.

Click below to expand sections for more detailed analysis

Where next?
  1. Will the index fall towards lows of 7,460? or;
  2. Will the index rise towards highs of 7,600?

The UK Index 100 is on-track for a retest of recent 7555 resistance. Breakout towards 7600 record highs? Moving averages set-up is bullish.

  • Watch levels: Bullish 7,555, Bearish 7,525

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7540, 7535, 7520, 7510, 7500, 7485, 7455
  • Potential resistance: 7550, 7555, 7575, 7600, -

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 12,915? or;
  2. Will the index rise above highs of 13,001?

The DAX 30 continues to test 12980 resistance. Breakout? Back to record highs?

  • Watch levels: Bullish 12,985, Bearish 12,970

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 12970, 12960, 12950, 12930, 12920, 12915
  • Potential resistance: 12980, 12985, 12990, 13000, -

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 22,740? or;
  2. Will the index rise to fresh highs of 22,900

Dow Jones Futures are narrowing into 22900 to complete a 1-month bullish flag. However we are conscious potential for a bearish wedge reversal.

  • Watch levels: Bullish 22,860; Bearish 22,845

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 22850, 22830, 22810, 22780, 22750
  • Potential resistance: 22860, 22870, 22880, 22900, -

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 $1,262? or;
  2. Will Gold rise towards highs of $1,355?

Gold’s rebound has again found resistance, this time at $1298. Note the RSI remains bullish.

  • Watch levels: Bullish $1298, Bearish $1292

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1294, 1292, 1290, 1285, 1282, 1280, 1275, 1270, 1262
  • Potential resistance: 1296, 1298, 1300, 1303, 1310, 1315, 1320, 1335

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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