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Global equities are nursing losses after Trump’s US healthcare reform bill withdrawal highlighted Republican divisions that fuel doubts about passing the other stimulus pledges that got him elected. Whilst an unfortunate stumble at his first major hurdle, market weakness is thus far limited, suggesting hope it might even open the door to making earlier headway on the pro-growth policies (infrastructure spending, bank deregulation, tax reform) that inspired the recent global risk-on rally.
The UK UK Index is struggling under the weight of Miners (stronger GBP, weaker base metals prices) and Banks (US deregulation difficulties, lower US inflation and fewer Fed rate hikes). This is easily overshadowing minor benefit from Healthcare (reform withdrawn) and Safehaven Miners (precious metals rallied). Germany’s DAX is underperforming with losses almost across the board, most notably among Lufthansa, RWE, VW, Thyssenkrup and Commerzbank on a combination of sector downgrades and global growth concerns.
The UK Index 100 has found support at 7255 to keep the November uptrend alive. The DAX 30 is back above 11960 in the middle of its 11875-12100 range. Dow Jones Futures declines look to have been stemmed by intersecting rising support at 20440. Gold at $1256 has made a bullish break beyond 5-month falling highs and its 200-day moving average.
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The UK Index 100 has found support at 7255 to stall a bearish flag and keep the November uptrend alive. Beware RSI holding oversold and 7290 resistance by way of breached 50-day moving average.
Watch levels: Bullish 7295, Bearish 7275
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 back above 11960 in the middle of its 11875-12100 range.
Watch levels: Bullish 11990, Bearish 11960
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 declines look to have been stemmed by intersecting rising support at 20440. Note RSI holding oversold which could be bearish?
Watch levels: Bullish 20,510, Bearish 20,470
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 at $1256 has made a bullish break beyond 5-month falling highs and its 200-day moving average. Can it rally to 9-month falling highs at $1280? RSI not yet overbought.
Watch levels: Bullish $1258, Bearish $1255
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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