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Index Focus - 11 October 2017

Equities are mixed around breakeven. Investors are perhaps holding out for the latest Fed minutes this evening, for hints on policy outlook. On the other hand they may be awaiting further clarity on the Catalonia vs Madrid situation with PM Rajoy due to speak today. Or simply waiting for the first of the big US banks to report Q3 results tomorrow to give us fresh signals. The uptrend may have slowed but the bullish bias remains. Watch out for that next catalyst.

The UK UK 100  is held back by HSBC (profit taking from summer highs), MNDI (profits warning), LLOY & RBS (profit-talking after yesterday’s upgrades) and BHP (metals prices under pressure). Offering buoyancy are positive contributions from SN (speculation of Elliott Advisors building a stake), VOD (extending rally; pref for BT), ULVR (buying back pref. shares) and RDSb (oil price bounce) and SHP.

Germany’s DAX is just positive thanks to Utilities (miners resisting coal phase out), Autos (Sept Sales) and Lufthansa (labour deal with pilots) offsetting standout decliner BASF (product problems).

The UK Index 100 has found support at 7530 after a pullback from 7555. The DAX 30 have found support at 12950 after a pullback from falling highs resistance at 12980. Dow Jones Futures holds rising support at 28920, on track to complete a bullish flag at 22900. Gold has pulled back to intersecting support at $1287.

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Where next?
  1. Will the index fall towards lows of 7,455? or;
  2. Will the index rise towards highs of 7,600?

The UK Index 100 has found support at 7530 after a pullback from 7555.

  • Watch levels: Bullish 7,555, Bearish 7,530

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7530, 7505, 7500, 7485, 7470, 7455
  • Potential resistance: 7540, 7555, 7575, 7600, -

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 12,910? or;
  2. Will the index rise above highs of 13,001?

The DAX 30 have found support at 12950 after a pullback from falling highs resistance at 12980.

  • Watch levels: Bullish 12,975, Bearish 12,945

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 12950, 12945, 12930, 12920, 12910, 12985
  • Potential resistance: 12960, 12975, 12980, 12990, 13000

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 21,700? or;
  2. Will the index rise to fresh highs of 22,900

Dow Jones Futures holds rising support at 28920, on track to complete a bullish flag at 22900. Beware potential for a bearish wedge reversal.

  • Watch levels: Bullish 22,855; Bearish 22,820

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 22790, 22775, 22770, 22760, 22750, 22740, 22730, 22700
  • Potential resistance: 22800, 22900, -

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 $1,262? or;
  2. Will Gold rise towards highs of $1,315?

Gold has pulled back to intersecting support at $1287.

  • Watch levels: Bullish $1295, Bearish $1286

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1287, 1285, 1283, 1280, 1275, 1270, 1262
  • Potential resistance: 1290, 1295, 1300, 1305, 1315

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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