This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equities are positive this morning, but only just as fresh USD weakness from a now slightly less hawkish Yellen hinders equities via reciprocal – albeit waning – strength in GBP and EUR. This while markets wait to see who turns up to this evening’s Trump inauguration. The calm statesman-like figure from election night, who could reassure markets about his policies. Or the outspoken, unscripted, media scolding mega-tweeter we have had to deal with since November.
The UK 100 is break-even in the midst of a tug of war: Oil, Tobacco Telcos and Financials helping versus hindrance from Miners, Healthcare, Grocers and Consumer Staples. DAX gaining thanks to Banks and Airlines. Wall St higher, but not yet making up for last night’s negative close.
The UK 100 is struggling with 7220 resistance, potentially pausing before a drop to 7070. The DAX 30 has bounced from 11550, but faces resistance at 11640. Dow Jones Futures bounced back from a test of 19700 but still holding 10-day falling channel. Gold testing $1200 for support and strength of 8-day rising lows.
Click below to expand sections for more detailed analysis
The UK 100 is struggling with 7220 resistance after yesterday’s breakdown, potentially pausing before another leg lower via a bearish head and shoulders top reversal that takes it back to 7070. RSI oversold but holding in the lower half is bearish.
Watch levels: Bullish 7230, Bearish 7185
Solid Green line
Possible support
Solid Red line
Possible resistance
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
The DAX 30 has bounced from 11545, but faces resistance at 11640 as its trading range narrows, deciding whether to break higher or lower.
Watch levels: Bullish 11645, Bearish 11595
Solid Green line
Possible support
Solid Red line
Possible resistance
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
Dow Jones Futures bounced back from a test of 19700 but still holding 10-day falling channel. Will it keep falling or break higher? Note a bullish ascending triangle formed overnight, however, even this would would only take it back to the 19800 ceiling of the channel highlighted.
Watch levels: Bullish 19765, Bearish 19745
Solid Green line
Possible support
Solid Red line
Possible resistance
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
Gold testing $1200 for support and strength of 8-day rising lows. Bounce or breach?
Watch levels: Bullish $1202, Bearish $1198
Solid Green line
Possible support
Solid Red line
Possible resistance
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
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.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research