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Index Focus - 29 December 2016

Equities are on the back foot today, for this last full trading session of the year. Sentiment is weighed on by US markets and the US Dollar having retreated from their highs yesterday, investors taking profits and some risk off the table. Having helped the commodity space yesterday oil is today’s hindrance following a surprise US API stockpile build ahead of today’s official EIA figure – both key data prints in the run-up to OPEC’s supposed production cut next month to buoy global prices. UK Index Miners and Financials are in a tug of war with defensives although the latter is hampered by a slightly stronger GBP. Note Financials and Autos dragging on Germany’s DAX along with a EUR off its lows versus the USD.

The  UK 100  has bounced from 7075 to regain 7100 and hold around recent highs. The DAX 30 has broken below 11450 which has since become resistance to keep it from recent highs. The Dow Jones Futures are trading around mid-Dec lows of 19800. Gold’s rebound has – for the moment- been checked at $1150 recent highs.

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Where next?
  1. Will the index fall towards lows of 7035 or;
  2. Will the index rise above highs of 7110?

The UK 100 has bounced from 7075 to regain 7100 and hold around recent highs. Can it breakout or will it retreat like US peers?

Watch levels: Bullish 7115, Bearish 7070

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7090, 7085, 7075, 7070, 7060, 7080, 7035
  • Potential resistance: 7105, 7108, 7110, 7112, 7130, 7135, -

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 11405? or;
  2. Will the index rise above highs of 11482?

The DAX 30 has broken below 11450 which has since become resistance to keep it from recent highs.

Watch levels: Bullish 11455, Bearish 11425

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 11430, 11420, 11415, 11410, 11405
  • Potential resistance: 11450, 11460, 11470, 11477, 11480, 11482

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 19740? or;
  2. Will the index rise towards highs of 20000?

Dow Jones Futures are trading around mid-Dec lows of 19800. Note hour RSI suggests the index is oversold. Bounce due?

Watch levels: Bullish 19860, Bearish 19795

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 19820, 19810, 19800, 19750
  • Potential resistance: 19840, 19850, 19860, 19880, 19900, 19920, 19940, 19960, 19980

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 $1230? or;
  2. Will Gold rise towards highs of $1165?

Gold’s rebound has – for the moment- been checked at $1150 recent highs. Breakout or retrace?

Watch levels: Bullish $1151, Bearish $1145

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend, rebound
  • Potential support: 1148, 1146, 1144, 1142, 1140, 1138, 1137, 1136, 1130
  • Potential resistance: 1150, 1155, 1160, 1165, 1170, 1180, 1190, 1200

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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