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Index Focus - 2 August 2017

Equities are posting small losses as an oil price sell-off (partly reversed), auto sector weakness, an extension of unwelcome GBP+EUR strength, continued Trump uncertainty and mixed corporate results this week all combine to overpower last week’s late revival of bullishness.

The UK  UK 100  is being held underwater as disappointing updates from Standard Chartered and Rio Tinto drag on banking and Mining peers, BP reacts to lower oil prices and both BATS and CRH struggle with GBP strength. There is limited help from gains for defensives such as BAE Systems (results), Glaxo, IAG and Reckitt Benckiser.

Germany’s DAX is offside as losses for HeidelbergCement (results yesterday; EUR strength) and Commerzbank (results) outpace gains for Lufthansa (results) and Vonovia (broker upgrade).

The UK Index 100 sell-off has found support at 7400. The DAX 30 has turned back below 12250. Dow Jones Futures hover around 22000 with potential for a break higher or lower. Gold holds above the floor of its July rising channel at $1265.

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Where next?
  1. Will the index fall towards lows of 7340? or;
  2. Will the index rise towards highs of 7515

The UK Index 100 sell-off has found support at 7400.

  • Watch levels: Bullish 7410, Bearish 7395

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 7400, 7390, 7380, 7370, 7360, 7340
  • Potential resistance: 7410, 7420, 7440, 7460, 7490, 7500, 7515

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 12,085? or;
  2. Will the index rise towards highs of 12,675?

The DAX 30 has turned back below 12250.

  • Watch levels: Bullish 12250, Bearish 12220

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 12220, 12200, 12100, 12085
  • Potential resistance: 12250, 12280, 12305, 12350, 12400

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 21,870? or;
  2. Will the index rise above highs of 22,020?

Dow Jones Futures hover around 22000 with potential for a break higher or lower

  • Watch levels: Bullish 22,010; Bearish 21,990

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 21990, 21980, 21940, 21900, 21870
  • Potential resistance: 22010, 22045, -

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 holds above the floor of its July rising channel at $1265.

  • Watch levels: Bullish $1268, Bearish $1264

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1266, 1264, 1260, 1258, 1250, 1245
  • Potential resistance: 1268, 1270, 1274, 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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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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