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The ECB’s Mario Draghi sent the markets rallying higher yesterday after announcing that the ECB would begin purchasing ABS, that will last for around two years. This announcement to introduce further QE sent the Dow to another all-time high breaking 17500. However, the euphoria was relatively short lived as news filtered through that the cease-fire between Ukraine and Russia had been broken and that there was signs of heavy armour being deployed near the border of the countries which caused a temporary pull back from the highs. Positive sentiment regained control towards the close as the bulls took a hold of the markets sending global markets higher again. Overnight has seen further all-time highs on the Dow which broke 17600 briefly. This equates to an 1800 point rally in under 3 weeks! Today’s Non-farm Payroll announcement this afternoon could send the Dow higher still.
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The UK’s UK 100 finally managed a breakout of prior resistance level that has been tricky of late. This level could now turn support if the break is sustained. The UK Index could see a run up towards 6700 now as there appears to be little in the way of resistance until 6672. The 50 day moving average has broken above the 100 day moving average whilst the RSI is still trading at the overbought level. Support may also come into play around the 50 day moving average currently at 6537.
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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Germany’s DAX broke above its resistance level of 9350 yesterday to trade at 5 week highs. This level may now provide support as the 3 weeks uptrend continues to push on. The 50 day moving average has broken above the 100 day moving average although the RSI is in decline after falling from overbought territory. The DAX will now look to attack 9700 with relatively few resistance hurdles in the way until then.
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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US Dow Jones registered yet another record high yesterday, firstly breaking into 17500’s before touching 17600 briefly overnight as the 3 week rally continues to remain strong. The Dow has now rallied 1800 points since last months lows and with today’s Non-farm payrolls it could well see 17700 too! Support should come into play along the rising trend line as well as the 50 and 100 day moving averages. The RSI has turned lower, falling from overbought territory.
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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