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Equity markets are higher this morning, continuing to recover from yesterday’s bond-market wobble and Greek debt crisis inspired sell-off. However Greece is far from out of the woods, engaging in jiggery-pokery to satisfy IMF debt deadlines. Much progress required before we can see any wood for the trees. After declines, higher lows allowing UK 100 to eye 7000 and Germany’s DAX to try for a breakout of its April downtrend. Wall St already back near recent highs while Gold continues to consolidate below the key $1200 level.
UK 100 found support around 6900 after a test of this and its 100-day moving average. Note the level corresponds with historical highs of March 2013 to Feb 2015. Still in sideways 2-week shift, but higher low and high of the last 2 sessions bodes well for another attack at recent highs. The break above 6950 this morning is also a plus.
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 continues to hold above its 7-month trendline of rising support and (like its UK counterpart) its 100-day moving average. The April downtrend channel remains to be breached although support at 11400 could be the foundations for a test of the ceiling, backed up by the daily RSI finding a base.
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 has recovered back close to recent 18200 highs. All eyes on whether this serves as resistance again or whether all time highs 18284 can be revisited. Sideways shift since early March continues. Rising daily RS favourable although shorter term RSIs suggest 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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Gold made a step change higher to test $1195 but still unable to regain $1200 despite weaker USD and Greek debt woes which should otherwise encourage safehaven demand. Consolidation range. Support at $1180 could put an end to April falling channel. Note recent $1200-1215 highs coincide with 100 and 200-day moving averages. Daily RSI neutral.
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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