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Index Focus - 4 October 2017

UK equities are mixed at half time (both for the day and week). The UK Index is flat, hindered by lower oil prices and a stronger GBP, derived from more stronger than expected UK PMI Services and USD weakness (US debt concerns) although the latter is helping buoy its many commodity sensitive names. The German DAX is being dragged lower by similar EUR strength as well as disappointing Eurozone Retail Sales and concerns about Catalonia declaring independence.

The UK’s UK 100  sees gains for Asia-reliant financials (HSBC, STAN) and Miners (RIO, AAL, BLT) welcoming USD weakness, and DGE extending a last September bounce, being offset by oil majors (BP, RDSb) suffering from persistent oil price weakness, CNA & SSE down on concerns about new UK energy policy and TSCO Q2 results getting a mixed reception.

The German DAX underperforms due to losses for ThyssenKrupp (equal representation for Tata employees after merger), E.On (UK policy concerns) and Banks (Spanish banks lower after Catalan referendum) overpowering gains for Fresenius and Autos (poor sales figures from US peers) and property name Vonovia (Fidelity positive).

The UK Index 100 is holding steep rising support at 7460. The DAX 30 has made a fresh record high of 12975, but may be tiring. Dow Jones Futures have extended the bullish flag we highlighted yesterday. Gold has broken above falling highs resistance to re-test $1280.

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Where next?
  1. Will the index fall towards lows of 7,200? or;
  2. Will the index rise towards highs of 7,540?

The UK Index 100 is holding steep rising support at 7460.

  • Watch levels: Bullish 7,480, Bearish 7,440

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7455, 7440, 7425, 7400, 7380
  • Potential resistance: 7470, 7480, 7500, 7540, 7550, 7600

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 11,875? or;
  2. Will the index rise above highs of 12,975?

The DAX 30 has made a fresh record high of 12975, but may be tiring. RSI turning over?

  • Watch levels: Bullish 12,975, Bearish 12,890

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 12895, 12850, 12830, 12800, 12780, 12760
  • Potential resistance: 12920, 12940, 12975, -

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 21,600? or;
  2. Will the index rise to fresh highs of 22,900

Dow Jones Futures have extended the bullish flag we highlighted yesterday. nel.

  • Watch levels: Bullish 22,670; Bearish 22,640

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 22645, 22630, 22600, 22580, 22560, 22540
  • Potential resistance: 22660, 226670, 22675, -

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 $1,252? or;
  2. Will Gold rise towards highs of $1,358?

Gold has broken above falling highs resistance to re-test $1280. Resistance for RSI?

  • Watch levels: Bullish $1281, Bearish $1268

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1278.5, 1277, 1275, 1273, 1271, 1270, 1268.5
  • Potential resistance: 1280.5, 1285, 1290, 1300, 1305

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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