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Index Focus - 2 February 2017

Major equity indices are mixed today with the UK’s UK 100 positive, but hampered by persistent GBP strength weighing on internationally-reliant names. This is derived from USD weakness (mid-Nov lows) after the Fed held pat last night and concern creeps in about potential fallout from the way Trump and his cabinet are handling certain issues.

Helping the UK index are Shell (oil higher, results beat), Reckitt (M&A), Miners (weak USD boosting metals, especially Gold and Silver), while Healthcare (uninspiring AZN earnings + profit-taking), Financials (Deutsche Bank miss) and Tobacco/Booze hinder (FX sensitive). The DAX is in the red as EUR rallies to its highest since 9 Dec hindering exporters, Deutsche Bank earnings disappointed and industrial Siemens gives up some of yesterday’s gains.

The UK 100  has broken above 7130 which could take it back to the 7160 channel ceiling. The DAX 30 remains trapped behind falling highs at 11650. Dow Jones Futures have broken beyond falling highs resistance and look to have found shallow rising support at 19800. Gold is testing $1220 which could open the door to a bullish flag to $1280.

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Where next?
  1. Will the index fall towards lows of 6875? or;
  2. Will the index rise above highs of 7365?

The UK 100 has broken above 7130 which could take it back to the 7160 ceiling of a 2-week channel.

Watch levels: Bullish 7140, Bearish 7125

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7130, 7115, 7100, 7090, 7065, 7050, 7000
  • Potential resistance: 7137, 7150, 7160, 7170, 7185, 7200

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 11400? or;
  2. Will the index rise above highs of 11895?

The DAX 30 remains trapped behind falling highs at 11650.

Watch levels: Bullish 11675, Bearish 11595

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 11600, 11580, 11550, 11535, 11500, 11450, 11430
  • Potential resistance: 11650, 11660, 11670, 11700, 11725, 11740

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 19,675? or;
  2. Will the index rise towards highs of 20,140?

Dow Jones Futures have broken beyond falling highs resistance and look to have found shallow rising support at 19800. Bounce or breach?

Watch levels: Bullish 19,850, Bearish 19,810

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 19810, 19800, 19785, 19750, 19730, 19700, 19675
  • Potential resistance: 19830, 19845, 19900, 19950, 20000

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 $1,128? or;
  2. Will Gold rise above highs of $1,375?

Gold is testing $1220 which could open the door to a bullish flag to $1280.

Watch levels: Bullish $1225, Bearish $1215

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1220, 1217, 1212, 1208, 1205, 1200
  • Potential resistance: 1228, 1235, 1240, 1250, 1260, 1280

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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