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Index Focus - 4 September 2017

European equity markets remain offside amid rising tensions on the Korean peninsula courtesy of Kim Jong-un’s strongest nuclear test to date. This may have eaten into last week’s risk appetite, but to a limited extent as indices trade off their worst levels and the flight to safety eases. The latter has been helped by positive Eurozone macro data, in turn fuelling fresh Euro strength that sees Germany’s DAX underperform. Note US markets closed for Labor Day holiday.

The UK’s UK 100  is held back by GSK & SHP (profit taking after bounces), RB (departure of key sales execs), HSBC & STAN (Asian risk) and PRU. These are overwhelming the positive contributions from ULVR (beneficiary of RB woes), FRES & RRS (gold rally), BP & RDS (small gains but heavyweights) and BATS (GBP-USD back from highs). Germany’s DAX is down on general weakness. Standout losers include utilities RWE & E.ON, ThysenKrupp & Infineon, both versions of Fresenius as well as financial heavyweight Commerzbank, easily outweighing solitary gainer ProSeibenSat.1 Media.

The UK Index 100 awaits a break from its new 7400-7440 range. The DAX 30 is struggling to get back above 12100, still hampered by a summer downtrend. Dow Jones Futures are back below 21950, consolidating their recent bounce. Gold has pulled back from $1340 having revisited Nov highs and completed a bullish flag.

Click below to expand sections for more detailed analysis

Where next?
  1. Will the index fall towards lows of 7,285? or;
  2. Will the index rise towards highs of 7,550?

The UK Index 100 awaits a break from its new 7400-7440 range. Bullish pennant on hourly chart? Back to last week’s highs to revive optimism in a recovery to 7550?

  • Watch levels: Bullish 7,440 Bearish 7,400

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7420, 7415, 7400, 7380, 7350, 7300
  • Potential resistance: 7430, 7435, 7440, 7450, 7460, 7500, 7550

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 11,865? or;
  2. Will the index rise towards highs of 12300?

The DAX 30  is struggling to bet back above 12100, still hampered by a summer downtrend.

  • Watch levels: Bullish 12,100, Bearish 12,070

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 12070, 12040, 12000, 11950, 11900, 11865
  • Potential resistance: 12100, 12150, 12175, 12200, 12250, 12300

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 towards highs of 22,180

Dow Jones Futures are back below 21950, consolidating their recent bounce. From this tight range will it be breakout or a break down?

  • Watch levels: Bullish 21,940; Bearish 21,900

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 21920, 21900, 21880, 21850, 21835, 21800, 21765, 21730, 21650
  • Potential resistance: 21940, 21960, 21980, 22000, 22020, 22040, 22080, 22150, 22180

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 $1,123? or;
  2. Will Gold rise towards highs of $1,375?

Gold has pulled back from $1340 having revisited Nov highs and completed a bullish flag.

  • Watch levels: Bullish $1323 Bearish $1315

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1332, 1326, 1324, 1322, 1320, 1315, 1310, 1305, 1300
  • Potential resistance: 1336, 1338, 1340, 1345, 1352, 1360, 1367, 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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