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Index Focus - 15 November 2016

Equities are mixed this morning, the UK’s UK Index outperforming its Wall Street peer while Germany’s DAX languishes in the red. The UK blue-chip index is being assisted by a bounce in oil helping the heavyweight Oil majors and a mixture of gains from Banks (HSBC, LLOY) and Defensives (RS, VOD, ULVR, NG, DGE). This is offsetting weakness in metals prices which have peaked after their recent surge, weighing on Miners (RIO, GLEN, BLT, AAL, ANTO). Interpretation of the new US President remains the principal driver for all asset classes (equities, bonds, FX, commodities) especially how it might influence December’s Fed policy decision. Enough faith in Trump to go ahead and hike?

The  UK 100  is trying to engineer a breakout beyond yesterday’s 6815 highs but has work to do. The DAX 30 has turned back from its recent visit of 10800 channel ceiling highs. Dow Jones Futures remain above rising support at 18880, albeit back from yesterday’s fresh record highs just shy of 19000. Gold could be in the midst of a bullish complex inverse head & shoulders reversal back to $1250, if it can break above $1230.

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 trying to engineer a breakout beyond yesterday’s 6815 highs but has work to do. Bullish ascending triangle in the making?

Watch levels: Bullish 6825, Bearish 6760

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 6800, 6790, 6770, 6760, 6730, 6720, 6710
  • Potential resistance: 6820, 6850, 6880, 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 9970? or;
  2. Will the index rise above highs of 10830?

The DAX 30 has turned back from its recent visit of 10800 channel ceiling highs. Retrace on the cards? Or a second wind and a breakout? Weaker USD and stronger EUR hurting exporters.

Watch levels: Bullish 10715, Bearish 10660

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 10690, 10680, 10665, 10640, 10600, 10580, 10550, 10500
  • Potential resistance: 10720, 10740, 10750, 10760, 10780, 10800, 10830

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 18630? or;
  2. Will the index rise towards highs of 18970?

Dow Jones Futures remain above rising support at 18880, albeit back from yesterday’s fresh record highs just shy of 19000. Will the Trump inspired grind higher to new record highs persist or will we see a breakdown?

Watch levels: Bullish 18925, Bearish 18850

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 18890, 18880, 18860, 18820, 18790, 18740, 18700, 18630
  • Potential resistance: 18920, 18933, 18970, 19000

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 $1211? or;
  2. Will Gold rise towards highs of $1265?

Gold could be in the midst of a complex bullish inverse Head & Shoulders reversal back to $1250, if it can break above $1232? Note the positive in the RSI. A breakdown at $1225  however, could mean another foray towards $1200.

Watch levels: Bullish $1232, Bearish $1222

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 1225, 1222.5, 1220, 1217, 1211
  • Potential resistance: 1229, 1232, 1237, 1240, 1251, 1255, 1262, 1265

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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