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Index Focus - 19 June 2017

Equities have made a strong start to the new trading week. Macron gaining a French parliamentary majority has been welcomed for Europe, as have delayed Brexit negotiations finally getting underway. Metals and Oil are gaining ground on data fuelling fresh China optimism (and USD weakness) while retail digests last week’s M&A positively.

Driving the UK’s UK Index  is Oil majors (oil back at Friday highs), DGE & RB (broker updates), GLEN & RIO (Copper higher) and Banks (rate hike hopes) with minimal drag from the likes of MDC, RRS & FRES (Gold lower) and IHG (broker downgrade). Germany’s DAX benefits from broad-based strength, the most notable winners being Thyssenkrupp, Deutsche Bank, Deutsche BASF, Daimler & Munich Re.

The UK Index 100 rebound has been turned back at 7530 as alluded to in today’s morning report. The DAX 30 rally has been halted just shy of 12900. Dow Jones Futures are holding above 21440 having made fresh record highs. Gold is showing fresh potential to complete a bearish head & shoulders top reversal pattern to $1225.

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Where next?
  1. Will the index fall towards lows of 7380 or;
  2. Will the index rise towards highs of 7600?

The UK Index 100 rebound has been turned back at 7530 as alluded to in today’s morning report. Uptrend still valid. Back testing 7500 but with support at 7495. Will it have another go higher?

Watch levels: Bullish 7520, Bearish 7495

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 7495, 7480, 7470, 7460, 7440, 7420, 7400, 7380
  • Potential resistance: 7505, 7520, 7530, 7545, 7555, 7575, 7580, 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 12,405? or;
  2. Will the index rise towards highs of 12,925?

The DAX 30 rally has been halted just shy of 12900. Breakout to fresh highs ot retrace to rising lows support?

Watch levels: Bullish 12900, Bearish 12830

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: SIdeways
  • Potential support: 12850, 12835, 12850, 12800, 12780, 12760, 12740, 12710
  • Potential resistance: 12870, 12885, 12900, 12925, -

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 21,120? or;
  2. Will the index rise above highs of 21,471?

Dow Jones Futures are holding above 21440 having made fresh record highs. Can it push even higher? Friday’s rally is still intact

Watch levels: Bullish 21,470; Bearish 21,430

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 21435, 21410, 21395, 21380, 21350, 21310
  • Potential resistance: 21455, 21460, 21470, -

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 $1,215? or;
  2. Will Gold rise towards highs of $1,295?

Gold is showing fresh potential to complete a bearish head & shoulders top reversal pattern to $1225. Rallying equities are sapping demand for safe havens.

Watch levels: Bullish $1253; Bearish $1249.5

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 1251, 1250, 1294.5, 1248, 1246.5, 1240, 11235, 1230, 1225
  • Potential resistance: 1251.5, 1252, 1253, 1553.5, 1254, 1255.5, 1257

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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