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Index Focus - 8 August 2017

Equities remain mixed, and to a certain extent rangebound. The UK Index holds its sideways channel, digesting the recent rally. The DAX outperforms after a breakout from the range since yesterday lunch. Poor China/German trade data dented sentiment, but a weaker USD helping commodities and positive corporate results keep the longer-term uptrend alive.

The UK UK 100  is just above breakeven, thanks to Oil majors (higher oil price, ex-div Thurs), STAN (post results rebound) and a trio of AZN, GSK and DGE ahead of ex-divs on Thursday. Hampering progress are BATS, VOD and RB (defensives, post-bounce profit taking), RIO (iron ore price drop), HSBC (profit taking in HK) and PPB & IHG (results).

Germany’s DAX is higher, despite EUR strength, thanks to Deutsche Post (results; trade barometer), Siemens (new train order), RWE (Bloomberg article on industry growth) offsetting weakness for HeidelbergCement (German trade data?).

The UK Index 100 trades 7515-7535, waiting to make a break. The DAX 30 has bounced off 12225.  Dow Jones Futures retest 22,110 after breaking above yesterday’s falling highs. Gold is rallying back towards falling highs resistance at $1267.

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Where next?
  1. Will the index fall towards lows of 7,300? or;
  2. Will the index rise towards highs of 7,600

The UK Index 100 trades 7515-7535, waiting to make a break. Bullish flag pause? Back to record highs?

  • Watch levels: Bullish 7540, Bearish 7515

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7515, 7500, 7490, 7460, 7440, 7420, 7400
  • Potential resistance: 7535, 7540, 7560, 7600

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 12,100? or;
  2. Will the index rise towards highs of 12,675?

The DAX 30 has bounced off 12225. Back to channel highs?

  • Watch levels: Bullish 12275, Bearish 12225

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 12225, 12200, 12175, 12150, 12125, 12100
  • Potential resistance: 12275, 12300, 12340, 12400, 12450

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 21,980? or;
  2. Will the index rise above highs of 22,140?

Dow Jones Futures retest 22,110 after breaking above yesterday’s falling highs.

  • Watch levels: Bullish 22,120; Bearish 22,100

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 22100, 22085, 22070, 22050, 22025, 22000
  • Potential resistance: 22120, 22130, 22140, -

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 $1,244? or;
  2. Will Gold rise towards highs of $1,274?

Gold is rallying back towards falling highs resistance at $1267.

  • Watch levels: Bullish $1267, Bearish $1263

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1264, 1262, 1260, 1258, 1256, 1254, 1250, 1244
  • Potential resistance: 1266, 1267, 1270, 1272, 1274

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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