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Equity indices are positive although traders are in an understandably sombre mood after an overnight terror event. Eurozone PMI data has been largely supportive, although optimism towards OPEC has faded, the usual conflicting comments emerging in the run-up to what markets hope will be a production cut extension, perhaps even a deepening of cuts.
The UK 100 is buoyed by GBP off highs (versus USD, and extending weakness versus EUR), Banks (hopes of higher oil prices and GBP revival resulting in inflation that pushes BoE to hike), Oil (Shell rather than BP which is hampered by GBP near highs), ABF, CRH and PRU. Weighing on the index are Tobacco & Beverages (GBP strength) and Miners (Oil lower, metals reversed). Germany’s DAX underperforms thanks to Autos and Financials (undervalued versus US) despite the EUR giving up some strength versus USD, overpowering weakness in Adidas and Vonovia.
The UK Index 100 is sideways 7490-7520, offering range trading and breakout opportunities. The DAX 30 is trying to overcome 12700 again. Bullish flag to 12750? Dow Jones Futures are showing appetite to regain 20950. Gold holds its trend of rising support at $1260 thanks to a weak USD, but unable to breach last week’s $1265 highs.
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The UK Index 100 is sideways 7490-7520, offering range trading and breakout opportunities. Bullish inverse H&S reversal still valid, potentially to 7570.
Watch levels: Bullish 7525, Bearish 7490
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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The DAX 30 is trying to overcome 12700 again. Bullish flag to 12750?
Watch levels: Bullish 12680, Bearish 12650
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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Dow Jones Futures are showing appetite to regain 20950 in an extension of its rebound from 20500.
Watch levels: Bullish 20950; Bearish 20900
Solid Green line
Possible support
Solid Red line
Possible resistance
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
Gold holds its trend of rising support at $1260 thanks to a weak USD, but unable to breach last week’s $1265 highs.
Watch levels: Bullish $1262; Bearish $1258
Solid Green line
Possible support
Solid Red line
Possible resistance
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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