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Index Focus - 8 February 2018

Equities are back in the red, having failed to overcome key hurdles overnight, keeping our major indices under the cloud of falling highs resistance and a late Jan downtrend, albeit well off their sell-off lows. Calm may have returned but not enough risk appetite to engineer a break higher for further recovery. Investors still getting their bearings after the slump as we await the latest policy update from the Bank of England.

The UK UK Index  is 60pts offside, held back by Energy (lower oil), Miners (stronger USD > lower metals), Banks (limited risk appetite), VOD (fibre competition), and a handful of defensives giving up  some of yesterday’s bounce gains. Positive contribution from GSK (new HIV drugs, extending bounce), CPG (results) and AZN (GSK read-across, sector strength).

The UK Index 100 trades sideways 7200-7250, awaiting a break. The DAX 30 is back below 12500, in a falling channel. Dow Jones Futures are sideways 24560-24880, still consolidating. Gold has found support at $1310.

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Where next?
  1. Will the index fall towards lows of 6,920? or;
  2. Will the index rise towards highs of 7,500?

The UK Index 100 trades sideways 7200-7250, awaiting a break.

  • Watch levels: Bullish 7,250, Bearish 7,200

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 7210, 7200, 7175, 7135,
  • Potential resistance: 7240, 7260, 7280, 7310

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 11,700 or;
  2. Will the index rise towards highs of 13,310?

The DAX 30 is back below 12500 in a falling channel.

  • Watch levels: Bullish 12530; Bearish 12400

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 12400, 12320, 12200
  • Potential resistance: 12465, 12500, 12530, 12600

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 23,160? or;
  2. Will the index rise towards highs above 26,000?

Dow Jones Futures are sideways 24560-24880, still consolidating

  • Watch levels: Bullish 24,745, Bearish 24,630

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 24665, 24630, 24560, 24500
  • Potential resistance: 24742, 24800, 24875

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 $1,299? or;
  2. Will Gold rise towards highs of $1,366?

Gold’s has found support at $1310 with inits downtrend, hindered by a now stronger USD.

  • Watch levels: Bullish $1313, Bearish $1309

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 1310, 1309, 1306, 1299
  • Potential resistance: 1313, 1320, 1325, 1332, 1339

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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