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Major markets have bounced back from their lows but the combined weight of geopolitical uncertainty and disappointing macro data (especially from Germany, the supposed Eurozone powerhouse) is keeping a lid on any further advances. While we thought yesterday would be decisive, the indices have proved resilient refusing to give into as much weakness as we might have expected. Just another pause, or a turning point?
The UK’s UK 100 is off its worst levels but still under pressure with falling highs from end-July unbroken. The 6500 highs of yesterday become near-term resistance along with 6715. Downside to 6500 still can’t be ruled out although we would want to see proper breakdown from 6600 first. Note declines in Daily RSI slowing.
Germany’s DAX is back above April lows 9100, but not without a thorough test, almost as low as 9000. We need to see 9250+ before getting excited about recovery to 9700, with downside still possible to March lows 8905. Note Daily RSI remains oversold meaning confirmation still lacking of the end of the downtrend.
The US Dow Jones has found support at Apr/May lows and rallied back to the 200-day moving average. This bodes well for recovery potential to 17000, supported by daily RSI recovering from oversold, if only marginally, but we have yet to break above 16500, and we’d still prefer to see 16600 before jumping on board. Any subsequent downside could still seek out 16000, for we could still be in the midst of a pause.
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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
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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