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Index Focus - 8 February 2017

Major equity markets are positive but gains rather muted by weak Oil prices following a big US stockpile build that fuels concern about rising US production trumping OPEC cuts. This is weighing on risk appetite, adding to European (and US) political jitters and fresh interest in both fixed income bonds and traditional safe havens like Gold.

The UK 100 is benefiting from strength among Copper-sensitive miners (RIO, GLEN), Tobacco and a defensive-biased mish-mash of RBS, RB, RR, NG and IAG, all offsetting weakness in Oil, Healthcare, HSBC and BLT while Sterling holds up after yesterday’s rebound. The German DAX outperforms thanks to Lufthansa flying high on positive Air France traffic figures, while Dow Jones futures sit around their highs of the day .

The UK 100  has bounced off 7165 support to keep it sideways for a third day. The DAX 30 continues to struggle with falling highs resistance, now just below 11600. Dow Jones Futures sit just shy of 20100, back from fresh record intra-day highs of 20160 yesterday. Gold has made a decisive breakout to $1235, increasing the probability of a bullish flag pattern towards $1280.

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Where next?
  1. Will the index fall towards lows of 7130? or;
  2. Will the index rise above highs of 7228?

The UK 100 has bounced off 7165 support to keep it sideways for a third day.

Watch levels: Bullish 7195, Bearish 7165

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 7180, 7170, 7163, 7150, 1730
  • Potential resistance: 7190, 7200, 7210, 7220, 7225

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 11150? or;
  2. Will the index rise above highs of 11890?

The DAX 30 continues to struggle with falling highs resistance, now just below 11600.

Watch levels: Bullish 11570, Bearish 11530

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 11540, 11500, 11460, 11400
  • Potential resistance: 11580, 11600, 11640, 11680, 11695

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 19,735? or;
  2. Will the index rise towards highs of 20,160?

Dow Jones Futures sit just shy of 20100, back from fresh record intra-day highs of 20160 yesterday.

Watch levels: Bullish 20,105, Bearish 20,060

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 20080, 20070, 20060, 20050, 20030, 20005, 19970, 19950
  • Potential resistance: 20100, 20120, 20130, 20150, 20160, -

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 $1,125? or;
  2. Will Gold rise above highs of $1,355?

Gold has made a decisive breakout to $1235, increasing the probability of a bullish flag pattern towards $1280.

Watch levels: Bullish $1236, Bearish $1225

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 1235, 1231, 1230, 1228, 1226, 1222, 1220, 1215, 1210
  • Potential resistance: 1239, 1240, 1250, 1260, 1280, 1300, 1310, 1320, 1340

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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