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Index Focus - 19 July 2017

European equities are flat into half-time with corporate earnings and M&A buoying sentiment rather than macro data, as we await the next batch of US Q2 results. Investors are cautious ahead of the ECB tomorrow, given that odds of a US/UK rate hike have now receded in the face of recently soft data and inflation.

The UK 100 is in a tug of war with RB (sold Foods business) and a mix of VOD (push for doubling of call termination charges in India?), CRH (Irish broker upgrade), ABF (technical breakout) and GSK (selling Horlicks?) just about winning out over BP & Shell (lower oil price; GBP off lows), IAG (Cathay Pacific results) and RBS (UK inflation cut chance of BoE rate hike). The DAX sees tech (SAP, Infineon) fighting off weakness for Commerzbank and Industrials.

The UK Index 100 continues to oscillate around 7400, waiting for a break higher or lower. The DAX 30 is in the midst of a bearish flag towards 12300. Dow Jones Futures have found resistance at 21575. Gold is off its highs but found support at $1236.

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Where next?
  1. Will the index fall towards lows of 7600? or;
  2. Will the index rise towards highs of 7480?

The UK Index 100 continues to oscillate around 7400, waiting for a break higher or lower

  • Watch levels: Bullish 7420, Bearish 7380

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 7380, 7360, 7350, 7330, 7300
  • Potential resistance: 7420, 7430, 7440, 7455, 7460, 7480, 7500, 7540, 7460, 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 12,310? or;
  2. Will the index rise towards highs of 12,675?

The DAX 30 is in the midst of a bearish flag towards 12300

  • Watch levels: Bullish 12450, Bearish 12415

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 12415, 12400, 12385, 12350, 12310
  • Potential resistance: 12450, 12480, 12500, 12550, 12600, 12650, 12675

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 21,280? or;
  2. Will the index rise towards highs of 21,685?

Dow Jones Futures have found resistance at 21575.

  • Watch levels: Bullish 21,575; Bearish 21,550

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 21550, 21525, 21500, 21450, 21400, 21280
  • Potential resistance: 21757, 21600, 21640, 21685

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 $1,205? or;
  2. Will Gold rise towards highs of $1,295?

Gold is off its highs but found support at $1236. Resistance turned support after breakout.

  • Watch levels: Bullish $1244, Bearish $1236

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1236, 1230, 1220, 1215, 1210, 1205
  • Potential resistance: 1245, 1250, 1255, 1260, 1270, 1280, 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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