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Index Focus - 8 May 2017

Global equities are mixed this morning despite a Macron French Presidential victory, suggesting it was priced in before the weekend. Disappointing China trade data has also dampened optimism, pushing commodities lower. Investors have ushered in the new week by immediately shifting focus to the next month of risk events: An OPEC production cut extension meeting, UK General election, French parliamentary elections and Fed/ECB updates are all sure to keep us on our toes.

The  UK 100  is outperforming thanks to BP & Shell (optimism on OPEC extension) and defensives (HSBC, GSK, NG, VOD) offsetting weakness among the Miners (China data), UK Banks (profit taking) and US beneficiaries suffering from doubts about Trump progress (CRH, WOS). Germany’s DAX is struggling under the weight of losses for Banks (profit taking), Adidas (results), Lufthansa (wants to buy Air Berlin) and ThyssenKrupp.

The UK Index 100 is back above 7300 after a brief pullback from overnight highs. The DAX 30 has pulled back from fresh all-time highs to find 3-week rising support at 12660. Dow Jones Futures are off their recent 21075 highs, but not given up much ground. Gold’s bounce has found dual resistance at $1235.

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Where next?
  1. Will the index fall towards lows of 7085? or;
  2. Will the index rise towards highs of 7450?

The UK Index 100 is back above 7300 after a brief pullback from overnight highs.

Watch levels: Bullish 7320; Bearish 7290

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7300, 7290, 7285, 7280, 7265, 7260, 7240, 7225
  • Potential resistance: 7310, 7320, 7335, 7350, 7410, 7448, -

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 12,405? or;
  2. Will the index rise towards highs of 12,875?

The DAX 30 has pulled back from fresh all-time highs to find 3-week rising support at 12660.

Watch levels: Bullish 12700; Bearish 12660

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 12675, 12660, 12600, 12550, 12500, 12450, 12405
  • Potential resistance: 12700, 12750, 12800, 12845, 12875, -

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 20,400? or;
  2. Will the index rise towards highs of 21,175?

Dow Jones Futures are off their recent 21075 highs, but not given up much ground.

Watch levels: Bullish 21020; Bearish 20,960

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 20990, 20980, 20955, 20920, 20900, 20885
  • Potential resistance: 21000, 21020, 21070, 21175, -

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 $1,225? or;
  2. Will Gold rise towards highs of $1,268?

Gold bounce has found dual resistance at $1235.

Watch levels: Bullish $1237; Bearish $1233

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend to sideways
  • Potential support: 1230, 1225, 1220, 1215, 1200, 1195
  • Potential resistance: 1235, 1241.5, 1245, 1250, 1255, 1257

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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