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Index Focus - 24 January 2018

Equities are mixed at the mid-week point with another leg down for the US Dollar being the story of the day after yesterday’s breakdown and US Treasury Secretary Mnuchin today saying a weak Greenback is good for the US. Germany’s DAX is flat on account of USD weakness sending the EUR to fresh 3yr highs, and mixed European PMIs. The UK’s UK Index is lower as the GBP continues its climb, fuelled by both strong UK wages data and the Dollar weakness. Wall St equities extend their rebound from yesterday’s sell-off. Oil holds its ground.

The UK Index has broken lower as BATS/IMB, AZN/GSK DGE, ULVR (GBP strength internationally sensitive defensives), SGE (trading update), CRH (profit taking) and BAE (tech breakdown) deprive the index of 27pts, easily offsetting a combined and muted contribution of just 4pts from BP (high oil prices) and GLEN (weak USD, metals rebound).

The UK Index 100 has broken below this morning’s 7720 bearish watch level. The DAX 30 trades sideways around 13560. Dow Jones Futures continue to climb back towards 26300. Gold’s $1345 breakout has been slowed by 4.5yr falling highs resistance at $1350.

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Where next?
  1. Will the index fall towards lows of 7,610? or;
  2. Will the index rise towards highs of 7,805?

The UK Index 100 has broken below this morning’s 7720 bearish watch level. Note 7720 already turned from support to resistance.

  • Watch levels: Bullish 7,720, Bearish 7,690

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 7690, 7683, 7671, 7630, 7310
  • Potential resistance: 7720, 7730, 7745, 7750, 7790, 7805, -

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 13,420 or;
  2. Will the index rise towards highs of 13,600?

The DAX 30 trades sideways around 13560. Bullish ascending triangle?

  • Watch levels: Bullish 13580; Bearish 13530

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 13540, 13530, 13510, 13500, 13470, 13450, 13420
  • Potential resistance: 13580, 13600, -

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 26,075? or;
  2. Will the index rise towards highs of 26,325?

Dow Jones Futures continue to climb back towards 26300.

  • Watch levels: Bullish 26,285 Bearish 26,245

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 26255, 26240, 26200, 26155, 26125, 26075
  • Potential resistance: 26285, 26300, 26325, -

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 $1,228? or;
  2. Will Gold rise towards highs of $1,357?

Gold $1345 breakout, fuelled by USD weakness, has been slowed by 4.5yr falling highs resistance at $1350.

  • Watch levels: Bullish $1350, Bearish $1347

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1347, 1343, 1340, 1337, 1333, 1331, 1326
  • Potential resistance: 1350, 1357, 1375

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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