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Index Focus - 9 January 2018

Equities are higher, albeit off their best levels and still close to recent record highs. Oil prices have retreated from overnight highs after Iran’s Oil minister said “OPEC doesn’t want to see oil prices >$60”, base metals gave back some supply concern gains and we await the latest on German coalition talks and Westminster reshuffle. Note Goldman Sachs predicting another weak year for USD which could hinder UK/Euro equities via GBP and EUR strength.

The UK UK Index outperforms by way of strength for Miners (both commodities and USD higher), RDS, BATS (6% EPS boost from US tax reform) and Carnival (CS upgrade), which easily overpowers ULVR, TSCO (market share decrease), PRU and PSN & CRH (both profit taking form 2-month highs) weakness.

Germany’s DAX hovers around breakeven as notable gains for Continental (results), RWE (Bernstein upgrade) and Henkel (IoT collaboration) are offset by >1% losses for Deutsche Boerse, Adidas (Under Armour downgrade) and E.ON.

The UK Index 100 is back challenging yesterday’s 7730 mid-day highs. The DAX 30 is flat, holding yesterday’s 13330 breakout. Dow Jones Futures have resumed their uptrend towards yesterday’s highs. Gold has found support at $1314.

Click below to expand sections for more detailed analysis

Where next?
  1. Will the index fall towards lows of 7,670? or;
  2. Will the index rise towards fresh highs of 7,741?

The UK Index 100 is back challenging yesterday’s 7730 mid-day highs

  • Watch levels: Bullish 7,730, Bearish 7,715

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7717, 7705, 7690, 7670
  • Potential resistance: 7730, 7750, 7770, 7800

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 12,700 or;
  2. Will the index rise towards highs of 13,534?

The DAX 30 is flat, holding yesterday’s 13300 breakout in a narrow 13330-13415 range.

  • Watch levels: Bullish 13415; Bearish 13330

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways,
  • Potential support: 13370, 13350, 13330., 13275
  • Potential resistance: 13400, 13415, 13470, 13534

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 24,880? or;
  2. Will the index rise towards new highs of 25,400?

Dow Jones Futures have resumed their uptrend towards yesterday’s 25390 highs.

  • Watch levels: Bullish 25,325, Bearish 25,300

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 25300, 22285, 25260, 23235, 25200, 25100
  • Potential resistance: 25325, 25350, 25390, -

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 $1,306? or;
  2. Will Gold rise towards highs of $1,326?

Gold has found support at $1314. Bounce or bearish flag that leads to a breakdown?

  • Watch levels: Bullish $1316, Bearish $1313

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 1314, 1312, 1309, 1306, 1300, 1297
  • Potential resistance: 1316, 1318, 1319, 1320, 1321, 1322, 1325, 1326

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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