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Index Focus - 12 February 2018

Equities are sharply higher to start the week, investors embracing Friday’s US market recovery to replenish risk appetite. While basic resources names are leading the charge higher, very few stocks find themselves in the red as a lack of macroeconomic data leaves few barriers to bullishness. USD weakness has helped commodities climb higher, most notably crude oil off 2018 lows, while GBP strength is being largely ignored by investors looking to re-position themselves following last week’s excitement.

The UK UK Index  is trading 90 points higher thanks to hefty contributions from BP/Shell (Oil off lows), Miners (base metals higher on USD weakness), and heavyweight defensives BATS, ULVR, PRU, RB & DGE, with just a handful of stocks currently offside. Note all stocks on the German DAX currently positive.

The UK Index 100 is making another bullish test of 7185 intersecting resistance. The DAX 30 is trading a narrow 12310-12385 range. Break higher or lower? Dow Jones Futures have broken out from overnight highs resistance. Can they achieve another leg higher? Gold is retreating from $1324 resistance as the US dollar recovers.

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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 7,600?

The UK Index 100 is making another bullish test of 7185 intersecting resistance.

  • Watch levels: Bullish 7,190, Bearish 7,150

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 7165, 7155, 7135, 7115, 7100, 7075, 7000, 6980
  • Potential resistance: 7185, , 7200, 7220, 7240, 7260, 7310, 7335, 7375, 7390

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 11,900 or;
  2. Will the index rise towards highs of 13,300?

The DAX 30 is trading a narrow 12310-12385 range. Break higher or lower?

  • Watch levels: Bullish 12340; Bearish 12260

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 12285, 12255, 12220, 12190, 12170, 12150, 12120, 12100, 12000, 11900
  • Potential resistance: 12340, 12360, 12380, 12450, 12530, 12550, 12600, 21670

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 of 26,340?

Dow Jones Futures have broken out from overnight highs resistance. Can they achieve another leg higher?

  • Watch levels: Bullish 24,545, Bearish 24,445

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 2445, 24400, 24320, 24260, 24190, 23900, 23870
  • Potential resistance: 24540, 24570, 24660, 24720, 24830, 24900, 25250

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 $1,309? or;
  2. Will Gold rise towards highs of $1,365?

Gold is retreating from $1324 resistance as the US dollar recovers.

  • Watch levels: Bullish $1325, Bearish $1317

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 1319, 1317, 1314, 1310, 1307, 1300
  • Potential resistance: 1322, 1324, 1327, 1333, 1335, 1346

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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