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Index Focus - 16 October 2017

Equities are quiet but retain their bullish bias thanks to China inflation data boosting metals and their miners This increases the chances of this being another geopolitically inspired pause for breath before another leg higher. Catalonia remains non-committal on declaring independence, Trump is threatening the Iran nuclear deal, PM May needs to break the Brexit deadlock and oil is rallying as Iraqi forces clash with Kurds after their own referendum. But investors remain unfazed. Even as the latest results season develops and central banks aim to gradually further tighten policy.

UK UK 100  is holding positive thanks to Miners (China inflation data), SHP, BP (oil rallying), HSBC (fed Chair Yellen upbeat), AZN (broker upgrade). Holding it back are CTEC (profits warning, -15%), RB & DGE (GBP off its lows) and BARC (talk of BoE holding off from rate hike). The German DAX is outperforming (just) as gains for BAY, DBK, FRE and DAI (legally separating divisions) are countered by losses for RWE (UK energy cap overhang) and SIE (JPM says GE results to give clues).

The UK Index 100 holds its October rising channel at 7535. The DAX 30 at 13000 holds a rising channel from last week. Dow Jones Futures remain in an accelerated uptrend having made fresh record highs of 22920. Gold has made a twin bullish break back above $1300.

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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 holds its October rising channel at 7535.

  • Watch levels: Bullish 7,550, Bearish 7,535

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7535, 7530, 7520, 7500, 7485, 7470, 7460
  • Potential resistance: 7550, 7560, 7565, 7570, 7580, 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 12,910? or;
  2. Will the index rise above record highs above 13,040?

The DAX 30 holds its rising channel from last week at 13000. Fresh record highs?

  • Watch levels: Bullish 13030, Bearish 13,000

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 13000, 12990, 12980, 12960, 12950, 12920, 12910
  • Potential resistance: 13030, 13040, -

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 above 22,920

Dow Jones Futures remain in an accelerated uptrend having made fresh record highs of 22920.

  • Watch levels: Bullish 22,905; Bearish 22,890

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 22900, 22890, 22880, 22870, 22860, 22850, 22830, 22820, 22780
  • Potential resistance: 22920, -

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 has made a twin bullish break back above $1300.

  • Watch levels: Bullish $1307, Bearish $1300

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1300, 1290, 1285, 1280, 1270, 1260
  • Potential resistance: 1310, 1315, 1320, 1335, 1340, 1355

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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