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Index Focus - 26 October 2017

Equities have rebounded from yesterday’s wobble. Investors are back focusing on what is, on the whole, another quarter of solid earnings. That and the likelihood the ECB will confirm a lower but for longer QE programme, merely extending the central bank’s (and peers’) accommodative stance on monetary policy, hitherto supportive of global equities.

The UK 100 is positive thanks to BATS (GBP pullback), Miners (KAZ ups copper guidance), ULVR (bounce) and HSBC/STAN (preference for Asia exposed banks). Holding it back are BARC (Q3 profits miss), GSK (concerns acquisition might risk dividend) and BDEV (ex-dividend).

The German DAX benefits from broad gains, most notably from Beiersdorf (ups guidance), Munich Re (share buyback; dividend safe after US hurricanes impact) and Henkel (Beiersdorf read across). There is little drag on offer via losses for both Bayer and Deutsche Bank; Q3 sales miss and disappointing trading performance, respectively.

The UK Index 100 is close to a bullish test of yesterday’s 7480 breakdown. The DAX 30 is trying to break back above 13000. The Dow Jones Futures have broken above overnight highs of 23360. Gold has sold back from $1282 to confirm a shallow falling channel.

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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 is close to a bullish test of yesterday’s 7480 breakdown. Uptrend resumed?

  • Watch levels: Bullish 7,480, Bearish 7,460

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7460, 7440, 7430, 7400
  • Potential resistance: 7480, 7500, 7520, 7540, 7560

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 is trying to break back above 13000, and intersecting resistance.

  • Watch levels: Bullish 13005, Bearish 12,990

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways/Uptrend
  • Potential support: 12990, 12980, 12960, 12940, 12920, 12910
  • Potential resistance: 13000, 13020, 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 23,250? or;
  2. Will the index rise to fresh highs of 23,480?

Dow Jones Futures have broken above overnight highs of 23360. Bullish flag?

  • Watch levels: Bullish 23,375; Bearish 23,340

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 23360, 23340, 23320, 23300, 23260
  • Potential resistance: 23370, 23400, 23420, 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 $1,262? or;
  2. Will Gold rise towards highs of $1,305?

Gold has sold back from $1282 to confirm a shallow falling channel. Bearish flag?

  • Watch levels: Bullish $1283, Bearish $1275

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 1276, 1270, 1265, 1262
  • Potential resistance: 1280, 1283, 1285, 1292, 1300

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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