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Equities are mixed into the end of the week, the UK’s UK Index and US Wall St nursing small declines while Germany’s DAX posts small gains. The UK Index is being dragged down by a leaking oil price weighing on Oil major Shell, disappointing results from defensives Reckitt Benckiser and Pearson and continued profit taking in British American Tobacco. This is offsetting assistance via positive results from Barclays, M&A hopes helping Shire after yesterday’s speculation-infused pop by AstraZeneca and heavyweights HSBC and SABMiller both 1% to the good.
Markets may be disappointed that the Bank of Japan didn’t deliver more stimulus overnight (it’s probably just waiting until September, like the ECB), but Financials are clearly relieved that it didn’t take interest rates further negative. This is worth bearing in mind ahead of the UK’s Bank of England policy decision next week. While stimulus (more QE) is likely good for markets in general, a rate cut would be bad for UK banks, denting already risk-restricted post-crisis profitability.
The UK 100 looks to have turned over, now trading within the confines of a 3-day falling channel 6690-6735. The DAX 30 remains in its July uptrend, a 10300-10400 rising channel pointing towards 10500. Dow Jones futures continue to correct from all-time highs via an 18330-18460 falling channel. Gold may be in the midst of a bullish flag back towards its recent $1375 highs which could be fuelled by risk aversion and equities turning over.
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The UK 100 looks to have turned over, now trading within the confines of a 3-day falling channel 6690-6735. Has the Brexit bounce run its course? Are we headed back to 6600?
Watch levels: Bullish 6740, Bearish 6685
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 remains in its July uptrend, a 10300-10400 rising channel pointing towards 10500.
Watch levels: Bullish 10360, Bearish 10305
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
Wall Street/Dow Jones futures continue to correct from all-time highs via an 18330-18460 falling channel, confirmed by falling highs on the RSI. Watch for a break from a 24-hour narrowing pattern of rising lows and falling highs.
Watch levels: Bullish 18450, Bearish 18385
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 may be in the midst of a bullish flag back towards its recent $1375 highs which could be fuelled by risk aversion and equities turning over. Bounce at $1330? RSI rising lows are supportive.
Watch levels: Bullish $1336, Bearish $1330
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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