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Index Focus - 9 November 2016

Equity markets are negative, but nowhere near as much as you might expect, as investors digest news of a Trump Presidency. A UK 100 close to breakeven, having rallied 300pts from its overnight lows, and a DAX and DOW nursing what can only be described as minor losses in comparison to all those apocalyptic forecasts, looks a decent outcome. If anything, what’s happened bears eerily similar hallmarks to Brexit; complacency, surprise and panic followed by swift recovery. If anything it’s happened more quickly this time. Could Trump prove less controversial now all those populist votes have been won? Are there enough positives including an absence of congressional deadlock to help markets back towards their highs?

The  UK 100  has rallied back above 6800, a whopping 300pts off its overnight lows. The DAX 30 has staged a strong 400pt recovery to the middle of its recent 10200-10800 range. Dow Jones Futures are back above 18000, over 500pts off their overnight lows. Gold has retreated to $1300 from its overnight highs as a USD bounce and revived risk appetite dents safehaven demand.

Where next?
  1. Will the index fall towards lows of 6515 or;
  2. Will the index rise towards highs of 7130?

The UK 100 has rallied back above 6800, a whopping 300pts off overnight lows. Has panic evaporated? Can UK blue-chips challenge 6900 again?

Watch levels: Bullish 6855, Bearish 6790

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 6820, 6800, 6775, 6750, 6700, 6650
  • Potential resistance: 6835, 6850, 6911, 6950, 7000

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 9965? or;
  2. Will the index rise above highs of 10830?

The DAX 30 has recovered to the middle of its recent 10200-10800 range after an overnight flirtation with  losses of over 500pts that has since narrowed to just 60pts. Weaker USD hurting  German exporters via a stronger EUR.

Watch levels: Bullish 10410, Bearish 10325

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 10400, 10365, 10350, 10300, 10250, 10200
  • Potential resistance: 10450, 10500, 10550, 10600, 10630

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 17500? or;
  2. Will the index rise towards highs of 18500?

Dow Jones Futures are back above 18000, over 500pts off their overnight lows amid a strong recovery. This puts them back in their 17900-18400 range of Sept/Oct, not that far from the highs.

Watch levels: Bullish 18075, Bearish 17975

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 18000, 17975, 17900, 17800, 17745, 17700, 17640, 17600
  • Potential resistance: 18065, 18100, 18130, 108200, 18300, 18400, 18445

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 $1240? or;
  2. Will Gold rise towards highs of $1340?

Gold has retreated to $1300 from its overnight highs as a USD bounce and revived risk appetite dents demand for the safehaven yellow metal. Which way will it break from its new $1290-1310 range?

Watch levels: Bullish $1305, Bearish $1289

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways
  • Potential support: 1290, 1285, 1280, 1275, 1270
  • Potential resistance: 1300, 1304, 1310, 1320, 1330, 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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