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Index Focus - 7 December 2016

Equities are handsomely positive this morning buoyed by strength among financials and commodities. Optimism is rising that the ECB will extend QE tomorrow to maintain globally accomodative monetary policy and that a solution for Italy’s undercapitalised banks is near to avoid contagion. Oil prices joining metals in pointing back north is also helping, coupled with fresh USD strength translating to welcome GBP and EUR weakness.

The  UK 100  has made a bullish breakout at 6850, opening the door for a return to 7000 Nov highs. The DAX 30 has broken above 10800 to trade near 12-month highs and allow bulls think about 11400 again. Dow Jones Futures are flat after yesterday’s gains, but trying to get back above 19250 for another test of Monday’s all-time highs. Gold at $1171 is stuck in a falling channel, the safehaven ignored as equities push north.

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Where next?
  1. Will the index fall towards lows of 6520 or;
  2. Will the index rise towards highs of 7130?

The UK 100 has made a bullish breakout at 6850, opening the door for a return to 7000 Nov highs. Beware 2-month falling highs at 6890.

Watch levels: Bullish 6895, Bearish 6850

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 6865, 6855, 6842, 6830, 6820, 6810, 6800
  • Potential resistance: 6875, 6880, 6890, 6900, 6960, 7000

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 8700? or;
  2. Will the index rise towards highs of 11400?

The DAX 30 has broken above 10800 to exit its 4-month sideways channel, trade near 12-month highs and allow bulls think about 11400 again.

Watch levels: Bullish 10955, Bearish 10915

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 10920, 10900, 10875, 10860, 10840, 10820
  • Potential resistance: 10950, 11000, 11100, 11200, 11300, 11400

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 19090? or;
  2. Will the index rise towards highs of 19284?

Dow Jones Futures are flat after yesterday’s gains, but trying to get back above 19250 for another test of Monday’s all-time highs. Falling highs resistance needs to be cleared first though.

Watch levels: Bullish 19270 Bearish 19240

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 19250, 19240, 19220, 19190, 19160, 19140, 19120, 19100
  • Potential resistance: 19265, 19275, 19285, -

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 rise towards highs of $1340? or;
  2. Will Gold fall below lows of $1158?

Gold at $1171 is off its lows but still stuck in a falling channel, the safehaven ignored as equities push north. Note the RSI stuck in the bottom half of its range, which is  bearish

Watch levels: Bullish $1173, Bearish $1170.5

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend/Sideways
  • Potential support: 1171, 1170, 1167, 1166, 1164, 1157
  • Potential resistance: 1172.5, 1174, 1176, 1178, 1180, 1188

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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