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Index Focus - 25 October 2017

Equities are mixed mid-morning as the UK 100 suffers from stronger than expected Q3 preliminary GDP strengthening the case for a UK interest rate hike. This has sent GBP higher, to hamper the internationally exposed, while persistent USD strength hampers Energy and Miners and comment from David Davis does little to appease Brexit concerns. US futures are higher thanks to continued decent Q3 earnings reports from across the pond. The EUR and German DAX  are both flat ahead of tomorrow’s ECB policy meeting and update on QE taper plans.

The UK 100 is dented by declines for Miners (GLEN/RIO/BHP/AAL), oil majors (RDSb/BP), RB (broker update), STAN (profit taking), BT (extension of downtrend), FERG (Amazon launched Business Prime) and ABF (profit taking). Helping out are BATS (defensive, despite GBP rally), LLOY (no PPI, profits +50%), AHT (extending rally), HSBC and AZN. The

German DAX is flat as gains for Deutsche Bank & Commerzbank (M&A speculation for the latter), BASF (results read-across from french peer Air Liquide) and Lufthansa (results) offset Utility pair E.ON & RWE and car maker BMW.

The UK Index 100 holds its 7500-7550 3-week range.  The DAX 30 trades sideways 12980-13040 in a narrowing range. Dow Jones Futures found support at 23430 to remain in a rising channel. Gold is fast approaching 2017 intersecting rising support and its 200-day moving average at $1266.

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Where next?
  1. Will the index fall towards lows of 7,200? or;
  2. Will the index rise towards record highs of 7,560?

The UK Index 100 holds its 7500-7550 3-week range. Consolidation before another up-leg?

  • Watch levels: Bullish 7,530, Bearish 7,500

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 7505, 7490, 7485, 7450, 7425, 7400
  • Potential resistance: 7530, 7540, 7550, 7565, -

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 12,910? or;
  2. Will the index rise towards highs of 13,095?

The DAX 30 trades sideways 12980-13040 in a narrowing range. Breakdown or breakout?

  • Watch levels: Bullish 13040, Bearish 12,990

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways/Uptrend
  • Potential support: 13000, 12985, 12980, 1290, 12955, 12940, 12920, 12910
  • Potential resistance: 13040, 13050, 13060, 13070, 13095, -

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 23,150? or;
  2. Will the index rise to fresh highs of 23,370?

Dow Jones Futures found support at 23430 to remain in a rising channel. RSI in upper half is bullish.

  • Watch levels: Bullish 23,460; Bearish 23,420

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 23440, 23420, 23400, 23365, 23320, 23300
  • Potential resistance: 23460, 23480, -

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 $1,122? or;
  2. Will Gold rise towards highs of $1,355?

Gold is fast approaching 2017 intersecting rising support and its 200-day moving average at $1266. Bounce or breakdown?

  • Watch levels: Bullish $1273, Bearish $1271.5

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 1271.5, 1266, 1260, 1252, 1240
  • Potential resistance: 1273, 1274, 1276, 1278, 1281, 1284, 1286, 1291

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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