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Index Focus - 21 December 2016

Equity indices are once again trading flat as investors wait for an update on the ongoing recapitalisation process for Italian lender Monte dei Paschi (Finance Minister request for bailout at 2pm?) and eye the possibility of the Dow Jones breaking the 20,000 mark later today. A lack of macro data and corporate news in the run up to Christmas, coupled with a US Dollar coming slightly off its highs (impacting the UK Index ‘s exporters and DAX’s industrials) and crude oil prices unable to breakout from post-OPEC/non-OPEC production cut deal resistance are contributing further to a lack of significant movement in European bourses.

The  UK 100  has broken out from yesterday’s 7040 resistance, however has now halted at 7055 top end trading channel resistance. The DAX 30 has reached a fresh 13-month high, now has to overcome 11480 resistance to increase pace of its December uptrendDow Jones Futures have fallen back after rallying at European market open. Now consolidating at 19960-19975 for another attempt at 20,000. Gold continues to recover from 10-month lows however remains in 6-week technical downtrend.

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Where next?
  1. Will the index fall towards lows of 6870 or;
  2. Will the index rise towards highs of 7065?

The UK 100  has broken out from yesterday’s 7040 resistance, however has now halted at 7055 trading channel resistance.

Watch levels: Bullish 7060, Bearish 6995

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 7030, 7000, 6995, 6990, 6980, 6960, 6940
  • Potential resistance: 7040, 7065, 7135; -

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 11160? or;
  2. Will the index rise towards highs of 11480?

The DAX 30 has reached a fresh 13-month high, now has to overcome 11480 resistance to increase pace of its December uptrend.

Watch levels: Bullish 11480, Bearish 11430

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 11450, 11420, 11400, 11380, 11340, 11320
  • Potential resistance: 11470, 11480, 11500, 11600

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 19750? or;
  2. Will the index rise towards highs of 19985?

Dow Jones Futures have fallen back after rallying at European market open. Now consolidating at 19960-19975 for another attempt at 20,000. Will today be the day or will Italy spoil the party?

Watch levels: Bullish 19985, Bearish 19875

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 19960, 19900, 19890, 19880, 19860, 19820, 19800
  • Potential resistance: 19975, 19985, -

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 below lows of $1122? or;
  2. Will Gold rise towards highs of $1340?

Gold continues to recover fro 10-month lows however remains in 6-week technical downtrend.

Watch levels: Bullish $1137, Bearish $1131

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 1134, 1132, 1128, 1126, 1123, 1110, 1100
  • Potential resistance: 1135, 1136, 1137, 1140, 1142, 1150, 1155, 1165

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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