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Index Focus - 21 December 2017

Equity markets are speculatively positive this morning after the passage of US tax reform yesterday. The UK’s UK 100 outperforms, despite the latest Westminster P45 being handed to Deputy PM Damien Green, as the index’s plethora of foreign earning stocks reap the perceived benefits of President Trump’s first legislative victory. European equities, however, are more hesitant, awaiting the results of today’s crucial Catalonian parliamentary elections just months after the former government attempted to secede from Madrid.

The UK UK Index is enjoying strength amongst its large-cap foreign earning stocks, including the likes of BATS, Oilers BP & Shell, AZN, Miners and European Retailers DGE & RB. Offering minimal drag are STAN (North Korean geopolitical tensions), ULVR (technical breakdown), select Utilities (NG. & UU, the latter ex-div), SHP, BA. (increased US competition resulting from tax reform) and CCL.

Germany’s DAX is marginally higher as exporters (Infineon, HeidelbergCement, Fresenius, BMW) overpower losses for Banks ahead of the crucial Catalonia vote.

The UK Index 100 is benefiting from a double breakout from 7535/7545 resistance. The DAX 30 has halted this week’s sell-off at 13010 support. Dow Jones Futures are rallying from their 24700 channel floor. Gold has maintained its breakout above $1265.

Click below to expand sections for more detailed analysis

Where next?
  1. Will the index fall towards lows of 7,435? or;
  2. Will the index rise towards highs of 7,565

The UK Index 100 is benefiting from a double breakout from 7535/7545 resistance.

  • Watch levels: Bullish 7,565, Bearish 7,530

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7550, 7540, 7535, 7525, 7500, 7485, 7450
  • Potential resistance: 7555, 7565, 7591, 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 12,845 or;
  2. Will the index rise towards highs of 13,532?

The DAX 30 has halted this week’s sell-off at 13010 support.

Watch levels: Bullish 13,200; Bearish 13,175

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend within Uptrend
  • Potential support: 13050, 13010, 13000, 12900, 12820
  • Potential resistance: 13100, 13150, 13175, 13200, 13325, 13350, 13420, 13500, 13535

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 24,510? or;
  2. Will the index rise to a fresh highs of 24,875?

Dow Jones Futures are rallying from their 24700 channel floor. Back to 24860 resistance?

  • Watch levels: Bullish 24,855, Bearish 24,830

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 24745, 24730, 24700, 24675, 24620, 24500
  • Potential resistance: 24770, 24800, 24830, 24840, 24860, 24880, -

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 $1,236? or;
  2. Will Gold rise towards highs of $1,299?

Gold has maintained its breakout above $1265.

  • Watch levels: Bullish $1269, Bearish $1263

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1265, 1261, 1260, 1257, 1252
  • Potential resistance: 1270, 1277, 1290

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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