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Index Focus - 15 January 2018

Equities are back at rising support this morning, as persistent USD weakness in spite of solid US macro data and tax reform benefits translate to GBP and EUR strength further fuelled by optimism about a soft Brexit, German coalition talks and hawkish ECB minutes. This is holding back both the UK UK Index and Geman DAX , more-so the latter – while US equity futures remain close to fresh overnight highs in spite of today’s Martin Luther King markets holiday.

The UK UK Index is flat as a boost from BATS/ULVR (defensives), GLEN, (weak USD, higher metals prices, extending rally) and WPP (bullish breakout) are offset by the drag from HSBC/STAN/RIO (profit taking), BP (heavyweight, oil off highs), DGE (strong GBP). Germany’s DAX underperforms with heavier losers that gains, the likes of Lufthansa, BASF and Continental countering advances by ProSieben, Adidas and E.ON

The UK Index 100 holds above 7765 January rising support. The DAX 30 trades a new 13175-13300 channel. Dow Jones Futures continue their northerly step-up, now flirting with 26000. Gold has broken above $1335 resistance.

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Where next?
  1. Will the index fall towards lows of 7,623? or;
  2. Will the index rise towards fresh highs of 7,810?

The UK Index 100 holds above 7765 January rising support

  • Watch levels: Bullish 7,790, Bearish 7,760

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7765, 7760, 7750, 7735, 7716, 7701, 7690
  • Potential resistance: 7780, 7790, 7800, 7810, -

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 13,420?

The DAX 30 trades a new 13175-13300 channel

  • Watch levels: Bullish 13230; Bearish 13200

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 13200, 13180, 13170, 13150, 13100, 13010
  • Potential resistance: 13220, 13230, 13250, 13270, 13290, 13300, 13330

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 25,250? or;
  2. Will the index rise towards new highs of 26,000?

Dow Jones Futures are continue their northerly step-up, now flirting with 26000.

  • Watch levels: Bullish 25,975, Bearish 25,960

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 25935, 25920, 25900, 25840, 25788, 25745
  • Potential resistance: 25950, 25975, 25600, -

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 $1,205? or;
  2. Will Gold rise towards highs of $1,357?

Gold has broken above $1335 resistance, closing in on both September highs and 3.5yr falling highs resistance.

  • Watch levels: Bullish $1345, Bearish $1335

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1340, 1337, 1335, 1330, 1325
  • Potential resistance: 1345, 1350, 1357, 1377, 1389

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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