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Index Focus - 19 October 2017

Equities are on the back foot following disappointing results eBay, Unilever and Nestle and reports of Apple cutting iPhone8 orders due to low demand. At home, soft UK retail Sales and the overhang from stalled Brexit negotiations have sent GBP lower. Above all though, the Spanish standoff has legs, the Catalan president continuing to threaten a declaration of independence while the Spanish PM says Madrid is closer to triggering article 155 to suspend the region’s autonomy.

The UK UK 100  is being held underwater by Unilever (Q3 results), HSBC, BATS, BAE Systems (ex-div), WPP, GLEN & RIO (China GDP, copper lower), Reckitt Benckiser (Unilever read across). Offering a little, but not enough help, are BT (rebound, breakout), Ashtead (United Rentals read across, weaker GBP), RBS (extending rally), DGE (soft GBP).

The German DAX is sharply lower as USD weakness translates to unhelpful EUR strength for most constituents, notably hurting exporters like BMW (broker downgrade), Henkel, Thyssenkrupp, Adidas and Continental, while SAP foots the list after Q3 results.

The UK Index 100’s 1-month rising support is intact after a bearish test of 7500. The DAX 30 has breached 2-month rising support but holds above 12900. Dow Jones Futures have pulled back to intersecting support at 23000. Gold has bounced back to $1288 thanks to geopolitical concerns and a weaker USD.

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Where next?
  1. Will the index fall towards lows of 7,200? or;
  2. Will the index rise towards record highs of 7,600?

The UK Index 100’s 1-month rising support intact after a test of 7500.

  • Watch levels: Bullish 7,530, Bearish 7,500

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 7510, 7500, 7485, 7455, 7400
  • Potential resistance: 7530, 7540, 7550, 7565, 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 12,550? or;
  2. Will the index rise towards highs of 13,095?

The DAX has breached 2-month but holds above 12900.

  • Watch levels: Bullish 12970, Bearish 12,910

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 12940, 12930, 12910, 12845, 12800
  • Potential resistance: 12970, 12995, 13030, 13060

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 22,650? or;
  2. Will the index rise to fresh highs of 23,175

Dow Jones Futures have pulled back to intersecting support at 23000.

  • Watch levels: Bullish 23,070; Bearish 23,040

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 23020, 23000, 22950, 22900
  • Potential resistance: 23050, 23075, 23100, 23120, 23150

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 $1,306?

Gold has bounced back to $1288 thanks to geopolitical concerns and a weaker USD.

  • Watch levels: Bullish $1288, Bearish $1283`

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 1285, 1283, 1280, 1277, 1270, 1262
  • Potential resistance: 1288, 1290, 1295, 1300, 1304, 1306

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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