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Index Focus - 11 November 2016

Equity markets are voting risk-off into the weekend, perhaps worried about what a two-day break could deliver in terms of news about Trump’s team and his plans once in office. Investor bias remains positive, suggesting benefit of the doubt and optimism that spending heavily and cutting taxes will help turn America around. A correction from post-election highs is, however, no surprise. We rallied for six days after Brexit before pausing for breath. And that precedent means everything happening much quicker this time. It could well be that the Trump train pushes north again next week. Unless of course China sticks a spanner in the works with disappointing data on Monday morning.

The  UK 100  has broken below 6800, in the midst of a bearish flag pattern that could complete at 6650. The DAX 30 has yet to breach support at 10575, a weaker EUR helping exporters hold up. Dow Jones Futures are off their best levels, with weekly rising highs resistance checking the rally at 18900. Reduced safehaven seeking and USD strength has seen Gold breach 2016 rising support at $1260. Back to $1200?

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

The UK 100 has broken below multiple support levels and 6800. In the midst of a bearish flag pattern that could complete at 6650.

Watch levels: Bullish 6760, Bearish 6720

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 6725, 6700 6650, 6600, 6550, 6520
  • Potential resistance: 6750, 6800, 6850, 6900,, 6950, 7000

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 10000? or;
  2. Will the index rise above highs of 10800?

The DAX 30 has yet to breach support at 10575, a weaker EUR helping exporters hold up. It is holding near the top of its longer-term sideways channel. Bounce or break?

Watch levels: Bullish 10760, Bearish 10700

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 10600, 10575, 10550, 10500, 10450 , 10300
  • Potential resistance: 10650, 10700, 10750, 10800

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 15500? or;
  2. Will the index rise towards highs of 18900?

Dow Jones Futures are off their best, with rising highs resistance having checked its rally at 18900. Does a breach of intersecting support at 18800 mean retreat or push on?

Watch levels: Bullish 18810, Bearish 18750

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 18760, 18750, 18725, 18700, 18650, 18600
  • Potential resistance: 18800, 18825, 18850, 18875, 18890, 18900

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 $1200? or;
  2. Will Gold rise towards highs of $1375?

Reduced safehaven seeking and USD strength has seen Gold breach 2016 rising support at $1260. Back to $1200?

Watch levels: Bullish $1261, Bearish $1249

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 1253, 1250, 1245, 1240, 1235, 1220, 1200
  • Potential resistance: 1258, 1260, 1265, 1270, 1275, 1280. 1285, 1290, 1295

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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