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Index Focus - 16 November 2016

Equities are nursing small losses as excitement eases about US Trumpflationary policies representing a turning point and looming political risk in Europe attracts fresh attention. An Italian referendum on constitutional reform could see PM Renzi ousted. Austrian elections (third attempt) could see the far-right Freedom Party take power. Both take place on 4 Dec and, after Brexit and Trump, could add important populist precedents ahead of 2017 French and German elections given rising popularity for Le Pen’s National Front and the Alternative for Germany party, respectively. Oil off its highs on production cut scepticism is weighing on sentiment, while a mix of both risk and defensives bookend the UK index, confirming investor indecision.

The  UK 100  has breached rising support at both 6800 and 6780. Back to Friday’s 6710 lows? The DAX 30 is holding rising lows at 10700, with potential for a bullish ascending triangle breakout at 10800. Dow Jones Futures remain close to record highs, also in a bullish ascending triangle if it can breakout to 19000. Gold holding above $1225 suggests bottoming out before a bullish reversal. Breakout above $1235 required.

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 breached rising support at both 6800 and 6780. Back to interecting support at 6735, or all the way to Friday’s 6710 lows? Note the oversold RSI

Watch levels: Bullish 6795, Bearish 6665

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 6770, 6760, 6750, 6735, 6720, 6710
  • Potential resistance: 6780, 6790, 6800, 6820, 6850

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 9970? or;
  2. Will the index rise above highs of 10830?

The DAX 30 is holding rising lows at 10700, with potential for a bullish ascending triangle breakout at 10800.

Watch levels: Bullish 10740, Bearish 10680

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 10700, 10680, 10665, 10640, 10600, 10580
  • Potential resistance: 10720, 10740, 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 17500? or;
  2. Will the index rise towards highs of 18975?

Dow Jones Futures remain close to record highs, also in a bullish ascending triangle if it can breakout to 19000. Rising lows since the election.

Watch levels: Bullish 18910, Bearish 18870

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 18875, 18860, 18810, 18000, 18750, 18700, 18630
  • Potential resistance: 18890, 18900, 18920, 18940, 18960, 18970

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 $1212? or;
  2. Will Gold rise towards highs of $1340?

Gold holding above $1225 with rising low support suggesting the safehaven may be bottoming out before a bullish reversal. Breakout above $1235 required.

Watch levels: Bullish $1229, Bearish $1224

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1225, 1222, 1219, 1217, 1212
  • Potential resistance: 1229, 1230, 1233, 12235, 1240, 1251, 1255, 1265, 1270

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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