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Index Focus - 27 November 2017

Equities have made a positive start to the week, despite the USD giving up even more ground on 2018 Fed rate hike uncertainty, adding to unwelcome GBP and EUR strength. Sentiment is buoyed by hopes of German grand coalition talks on the horizon, Trump talking up tax cuts after Thanksgiving break, optimism about this week’s OPEC meeting, Bitcoin flirting with $10K and news of another Royal wedding.

The UK UK Index  outperforms, led higher by defensives including Healthcare (GSK upgrade, AZN drug submission) and the quartet of HSBC/PRU/ULVR/VOD, as well as AV (share buyback) and RDSB (OPEC optimism). Offering resistance are the Banks (BoE stress test tomorrow) and MCRO (broker downgrade). Germany’s DAX is up thanks to CBK (UBS looking at parts? Political optimism), Fresenius SE (rebound) and Lufthansa (new business class, EZJ broker upgrade), with minimal drag from chip-maker Infineon which has followed Asian Tech lower.

The UK Index 100 has broken above 7425. The DAX 30 is making an upside test of 13100. Dow Jones Futures have bounced back above 23550. Gold is making an upside test of recent $1295 resistance.

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Where next?
  1. Will the index fall below lows of 7,350? or;
  2. Will the index rise towards record highs of 7,585

The UK Index 100 has broken above 7425.

  • Watch levels: Bullish 7,440, Bearish 7,420

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7420, 7400, 7390, 7370, 7365, 7350
  • Potential resistance: 7440, 7460, 7475, 7500, 7540, 7580

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 12,560 or;
  2. Will the index rise to record highs of 13,530?

The DAX 30 is making an upside test of 13100

Watch levels: Bullish 13,120, Bearish 13,090

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 13080, 13060, 13040, 13000, 12980, 12955, 12905, 12855
  • Potential resistance: 13110, 13120, 13165, 13200, 13220, 13250

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 23,275? or;
  2. Will the index rise to fresh highs of 23,625?

Dow Jones Futures have bounced back above 23550

  • Watch levels: Bullish 23,580; Bearish 23,550

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 23550, 23520, 23510, 23500, 23460, 23410
  • Potential resistance: 23580, 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 $1,265? or;
  2. Will Gold rise towards highs of $1,310?

Gold is making an upside test of recent $1295 resistance.

  • Watch levels: Bullish $1296, Bearish $1290

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 1290, 1285, 1280, 1275, 1270, 1265
  • Potential resistance: 1296, 1297, 1300, 1306, 1310, 1314

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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