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Index Focus - 6 February 2018

Equities remain offside, albeit off their worst levels, as investors digest what has become a global rout and the return of volatility. Deciphering continues as to whether this is merely an overdue technical correction from overbought markets, with economic and corporate fundamentals considered solid in the face of rising interest rates. Others wonder if we are in the early stages of a more significant unwind following years of central bank stimulus, low volatility and classic optimism-fuelled complacency. If it’s the former, this could represent a buying opportunity. If it’s the latter, buckle up and don your tin hat.

The UK UK Index is down 130pts, with losses across the board, held back by RDSB (Oil off highs, preference for BP), HSBC (stronger USD, emerging markets exposure), ULVR/BATS (continued defensive sell-off), Miners (stronger USD, lower metals) and Banks (risk off). Faring better, holding up well, are NMC (UK Index outperformer for last 4 yrs), RRS (gold miner) ANTO (technical bounce), TSCO (Kantar market share data), GKN (M&A) and Sky.

The UK Index 100 bounce has slowed up at 7200. The DAX 30 has extended its bounce to 12400. Dow Jones Futures have support and 23250 Nov 2017 lows. Gold is calm around $1343 supported by safe-haven demand.

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Where next?
  1. Will the index fall towards lows of 6,920? or;
  2. Will the index rise towards highs of 7,400?

The UK Index 100 bounce has slowed up at 7200. Can it close the gap?

  • Watch levels: Bullish 7,225, Bearish 7,150

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Bounce within downtrend
  • Potential support: 7175, 7100, 7070, 7000, 6944, 6920
  • Potential resistance: 7225, 7270, 7300, 7400

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 11,700 or;
  2. Will the index rise towards highs of 13,601?

The DAX 30 has extended its bounce to 12400.  But has 12500 become resistance?

  • Watch levels: Bullish 12500; Bearish 12360

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 12400, 12355, 12300, 12170, 12100
  • Potential resistance: 12485, 12500, 12600,

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 22,000? or;
  2. Will the index rise towards highs above 26,705?

Dow Jones Futures have support and 23250 Nov 2017 lows. Will this hold up.

  • Watch levels: Bullish 24,025, Bearish 23,575

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 23750, 23575, 23250, 23150
  • Potential resistance: 24035, 24180, 24270, 24390, 24800

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 $1,327? or;
  2. Will Gold rise towards highs of $1,366?

Gold’s is calm around $1343 supported by safehaven demand.

  • Watch levels: Bullish $1346, Bearish $1339

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1341, 1339, 1336, 1333, 1330
  • Potential resistance: 1345, 1346, 1350, 1357, 1366

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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