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Equity markets are trending sideways this morning as UK 100 tests 7100 with Next (NXT) spearheading the attack, supported by Miners and Pharmaceuticals as investors divide their loyalties between defensive stocks and potentially undervalued natural resource producers, expecting China to ramp up economic stimulus measures to bolster its ailing economy. The DAX is experiencing a similar surge, testing resistance 100-odd points below its own all time highs as manufacturing stocks lead the index higher. Wall St. is flat and struggling, as it has been of late, to keep up with global peers. Oil majors are keeping things afloat there with Intel and Apple providing the headwinds. Gold is finding the going tough as it continues to trade below the bugbear $1200 level with both safe haven and manufacturing demand low for the time being.
UK 100 is trading at all time highs again, having broken through 7100 this morning with the index testing rising resistance, currently 7107. The bulls got it right yesterday – bears will be looking to a sell off today to keep the index within the confines of a 1-month rising channel.
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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 on the up supported by 2.5 weeks of rising lows while failing to make fresh highs. A test and breach of key resistance around 12340 could see the index make another attempt on its record while a pullback will put it back within a 2-day falling channel.
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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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The US Dow Jones is stuck in a 2-month downwards channel but currently testing resistance at falling highs to the upside.
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 moving even lower this morning having broken below 3-week rising support. A return to and break above said line would have things looking bullish once again for the commodity.
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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