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Index Focus - 8 November 2017

Global equities are flat to negative despite a positive start. The German DAX under-performs due to a slightly stronger EUR, amid German calls for tighter monetary policy and the USD lower on concerns about delays to US tax reform. Elsewhere, weighing on sentiment is the aggregate of oil off its highs, uncertainty among metals after China trade data, a mixed batch of earnings reports and uncertainty about M&A (eg. SSE, SKY).

The UK 100 is being held back by ABF (results yesterday), LLOY (housing sector weak), PSN (results), RBS (Credit Agricole read-across) and Shire (turned lower again) while IMB/BATS (defensive), RDSB (oil price 2yr high), HSBC (preference for Asia exposure), RIO (China data) and CRH prop the index up.

Germany’s DAX sees losses for Lufthansa (antitrust decision on Air Berlin Dec 7), Commerzbank (Credit Agricole results, not interested in CBK) and VW (EU unveils auto carbon emission reduction proposal) offset gains for HeidelbergCement (results), ProSeiben and E.ON (results).

The UK Index 100 has pulled back from an early rally to 7535. The DAX 30 holds the 13350 mid-point of its 2.5-month up channel. Dow Jones Futures hold above 2-month rising support at 23520. Gold remains unable to break above $1283.

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Where next?
  1. Will the index fall towards lows of 7,450? or;
  2. Will the index rise towards record highs of 7,590?

The UK Index 100 has pulled back from an early rally to 7,535.

  • Watch levels: Bullish 7,535, Bearish 7,500

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 7505, 7500, 7490, 7485, 7470, 7450
  • Potential resistance: 7520, 7535, 7550, 7570, 7590, -

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 12,400 or;
  2. Will the index rise to record highs of 13,534?

The DAX 30 holds the 13,350 mid-point of its 2.5-month up channel.

Watch levels: Bullish 13,380, Bearish 13,340

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 13340, 13320, 13300, 13255, 13200
  • Potential resistance: 13360, 13380, 13400, 13420, 13450, 13480, 13535

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 23,000? or;
  2. Will the index rise to fresh highs of 23,625?

Dow Jones Futures hold above 2-month rising support at 23520.

  • Watch levels: Bullish 23,570; Bearish 23,500

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 23520, 23500, 23480, 23470, 23400, 23340
  • Potential resistance: 23570, 23600, 23625, -

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 $1,252? or;
  2. Will Gold rise towards highs of $1,355?

Gold remains unable to break above $1283.

  • Watch levels: Bullish $1283, Bearish $1275

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 1277, 1275, 1272, 1270, 1265, 1260, 1252
  • Potential resistance: 1280, 1283, 1285, 1290, 1295, 1300, 1305

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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