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Index Focus - 8 March 2018

Equities trade mixed, off their best levels and still under pressure from falling highs resistance. This could yet see us re-test recent lows, even breach them, increasingly the likelihood of a second leg lower within a corrective phase that began late Jan. Panic may have eased about a trade war, the White House suggesting tariff exceptions for allies, however any bullish breath is being held until we’ve heard what the European Central Bank’s Draghi has to say on the outlook for growth and policy in his press conference at 1.30pm.

A flat UK 100  sees positive contributions from ULVR/VOD/GSK/AZN/DGE/NG (fresh interest in recently shunned bond proxies, the lack of explicit risk appetite) offset by several big names trading ex-dividend (BLT, STAN, CRH, PSN, EVR, SHP), AAL/GLEN/RIO (China trade data, metal tariff concerns), RDSb (USD off lows, oil pullback) and Aviva (results, profit taking).

The UK Index 100 remains under the cloud of falling highs resistance at 7175. The DAX 30 has bounced back to 12200. Dow Jones Futures are showing appetite for a meaningful break above 24800. Gold is pulling back towards $1320 again.

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Where next?
  1. Will the index fall towards lows of 7065? or;
  2. Will the index rise towards highs of 7,230?

The UK Index 100 remains under the cloud of falling highs resistance at 7175.

  • Watch levels: Bullish 7,170, Bearish 7,150

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend within downtrend
  • Potential support: 7150, 7125, 7090, , 7075, 7065
  • Potential resistance: 7170, 7180, 7200, 7230

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 11,730 or;
  2. Will the index rise towards highs of 12,400?

The DAX 30 has bounced back to 12200

Watch levels: Bullish 12,220; Bearish 12,175

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 12200, 12190, 12175, 12140, 12100, 12050
  • Potential resistance: 12220, 12235, 12275, 12320, 12400

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 24,213? or;
  2. Will the index rise towards highs of 25,825?

Dow Jones Futures are showing appetite for a meaningful break above 24800.

  • Watch levels: Bullish 24,850, Bearish 24,730

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 24730, 24700, 24650, 24600, 24540, 24500
  • Potential resistance: 24850, 24900, 24960, 25000, 25055

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 Gold fall towards lows of $1,304? or;
  2. Will Gold rise towards highs of $1,341?

Gold is pulling back towards $1320 again.

  • Watch levels: Bullish $1329, Bearish $1320

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 1324, 1322, 1320, 1318, 1315, 1310, 1304
  • Potential resistance: 1326, 1329, 1330, 1332, 1335, 1341

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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