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Major markets remain under pressure even if off their worst levels of last week with the weight of geopolitical/sovereign risk maintaining its hold over even reduced fears of an early US rate rise thanks to mixed signals from Friday’s US jobs report data and the data that followed. Note the UK’s UK Index and US Dow Jones having corrected 4% from recent highs while the German DAX has retraced 9%.
The UK’s UK 100 has got back above rising support from February at 6670. While good to see a bounce, and bulls will be eyeing recent 6835 highs, we await a decent break above 6700 before ruling out merely a pause before another leg down to the 6500 level highlighted on Friday. Beware falling highs and lows since June.
Germany’s DAX has found support at 9150, just above mid-April lows 9085, which bodes well for a recovery towards the 9700 levels lost last week, supported by the oversold daily RSI. As with the UK Index , however, another leg down to 8900 still can’t be ruled out, with support highlighted potentially being just a stop gap.
The US Dow Jones has held up at its 200-day moving average 16450, just above May lows of 16350, which leaves it looking rather like the German DAX with potential for both recovery to 17000 and another leg down to 16000, but with oversold daily RSI in its favour.
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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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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
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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