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Despite a positive open, equity markets turned negative with a worsening in French PPI and slowing in German Retail Sales data adding to Eurozone deflationary woes and vindicating ECB’s QE launch. More mixed US corporate earnings being badly digested and UK updates weighing (RDS down again, Diageo retracing, BT off despite good growth), while optimism from ECB comments eroded with nervousness about China Manufacturing update this weekend. Gold still suffering from strong USD and despite safehaven demand from myriad uncertainty (global growth, Greece, corp results)
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The UK’s UK 100 has held up at 6750 which keeps the uptrend from early January intact. This level should remain supportive, keeping us in a sideways channel should the intersecting rising trendline at 6765 be breached given that falling highs from 26 Jan may restrict gains into the weekend. Note Daily RSI not officially 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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Germany’s DAX remains in its January uptrend with rising support yet to see a meaningful test thanks to yet another bounce from 10600 yesterday. Another foray above 10800 is good to see overnight with shallower falling highs compared to UK Index meaning potential for an ascending triangle-like breakout to the upside if the rising support persists. Note Daily RSI still 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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US Dow Jones remains in a falling 6-week channel, unable to break above 17500 overnight as mixed corporate results hamper progress. Although testing well below, we are back above 17190 which corresponds with the 200-day MA although falling highs from Christmas remain a risk.
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 retraced further yesterday, having broken below its January trend of rising lows to test support at $1250. Note Daily RSI still falling back from overbought. Beware the bounce overnight being a pause within a bearish flag pattern with downside to mid-Jan lows $1225.
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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