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Equity markets are positive this morning as Wall St. overcame the weekend’s losses after the disappointing Non Farm payrolls data. Will the US Fed delay a rate rise off the back of this? Has this been priced into the markets out of the holiday weekend? Rebounding oil prices have buoyed the US energy sector, with support spreading to the global markets. The UK Index appears to be reveling in pre-election uncertainty as it marches up while the DAX is battling resistance 130pts below all time highs. Gold is selling off with about half of the gap that opened up on 5 April still to be filled. That being a matter of technicals, the US dollar basket is strengthening which will put additional pressure on Gold’s price from a macro perspective.
UK 100 has broken out of its falling channel from March 24 highs north of 7000, and is testing stepped resistance levels, currently trading around 6910. A break above would please bulls who will see 6950 as a show of strength for the index, while a move back south would show this mornings jump at market open as ‘too far, too fast’ for the bears.
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Possible support
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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 still trading above support at rising March lows and towards a bullish ascending triangle pattern which could give the index impetus to break up towards a re-visit of all-time highs.
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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The US Dow Jones is making Batman ears with resistance around 17943, having completely retraced last Friday’s losses but failed to maintain enough momentum to see the index make further progress back towards March highs 18010.
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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Gold is busy experiencing a sharp selloff, possibly back into a sideways channel with support at April 2’s close $1202.
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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