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Index Focus - 10 November 2016

Equity markets are rallying as if a surprise US election result was never anything worth worrying about. Swift reassessment of a Trump win has produced bullishness about a more acceptable Presidential character rising from ashes of highly controversial fires, lit and stoked only to turn underappreciated disillusion among the US electorate into game-changing votes. Hopes that fresh spending plans and attractive tax cuts will foster growth and inflation, so the Fed can proceed with policy normalisation, is helping investors to keep focus on the positives.

The  UK 100  is off its highs, back testing rising support at 6960. Bounce or breakdown? The DAX 30 has found resistance at its 10800 channel ceiling. Retrace or just a pause before another push higher? Dow Jones Futures are trading fresh all-time highs above 18700. Period. Gold is off its rising channel highs of $1292 as equities push higher and safehaven demand eases.

Where next?
  1. Will the index fall towards lows of 6520 or;
  2. Will the index rise towards highs of 7000?

The UK 100 is off its highs, back testing rising support at 6960. Bounce and on to all-time highs of 7100 or breakdown and return to election jitter lows?

Watch levels: Bullish 7005, Bearish 6840

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 6955, 6950, 6935, 6900, 6850, 6800, 6760
  • Potential resistance: 6975, 7000, 7066, 7100, 7130

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 8690? or;
  2. Will the index rise above highs of 11400?

The DAX 30 has found resistance at its 10800 channel ceiling. Retrace or just a pause before a breakout and second leg higher?

Watch levels: Bullish 10760, Bearish 10700

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 10720, 10700, 10685, 10650, 10635, 10615, 10600, 10550
  • Potential resistance: 10750, 10775, 10800, 10825, 10885, 11000, 11200, 11400

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 17500? or;
  2. Will the index rise towards highs of 18800?

Dow Jones Futures are trading fresh all-time highs above 18700.

Watch levels: Bullish 18775, Bearish 18690

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 18700, 18680, 18630, 18600, 18555, 18500, 18400, 18300
  • Potential resistance: 18740, 18760, 18770, 18780, 18800

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 $1240? or;
  2. Will Gold rise towards highs of $1340?

Gold is off its rising channel highs of $1292 as equities push higher and safehaven demand eases. Back down to $1270 support, again?

Watch levels: Bullish $1287, Bearish $1281

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1284, 1282, 1280, 1275, 1270, 1261, 1250
  • Potential resistance: 1290, 1293, 1300, 1307, 1310, 1320, 1330, 1340

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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