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Equity markets are higher again this morning after China Q4 GDP surprised to the upside suggesting its economic slowdown isn’t as severe as feared, reviving optimism in global growth even if it does cool hopes/delay likelihood of further China stimulus being forthcoming. Retail Sales and Industrial Production growth also impressed in the face of a slowing trend for growth in the world’s #2 economy. Gold remains around recent four-month highs of $1280 held back by the opposing forces of a strong USD and safehaven demand from uncertainty surrounding global growth.
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The UK’s UK 100 ‘s traded at a fresh 1-month high yesterday before retracting back towards 6600. Support looks like around the 100 day moving average at 6590 while resistance could be met at this mornings high of 6630. The RSI is declining after bouncing of resistance at its overbought level.
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 is struggling to maintain a break above 10300 after recording an all time high yesterday. The bullish flag pattern we highlighted worked perfectly. Support may come around the 50 day moving average at 10272 whilst resistance could prevail at 10300.
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 was closed yesterday with futures in the US pointing to a higher open today as it looks to reclaim last weeks highs. Resistance could come into play at 17600 while support could come at the 50 day moving average around 17513. The RSI is declining after bouncing from overbought.
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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Spot Gold has taken another leg higher this morning to trade at a fresh 5 month high. A bullish flag pattern indicates a possible run up towards 1330, a level that has been prior resistance.
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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