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UK 100 holding above 6700 having bottomed at 6650. DAX and Dow broken above 11100 and 18100 necklines of bullish double-bottom reversal patterns. Gold pausing around $1199 after surging to test 1 Jun highs $1205.
Equities positive this morning after the US and Asia, bar China, shrugged off concerns about having to wait out yet another Greekend for progress between Athens and its Creditors on avoiding a month-end Grefault (IMF says no grace period) and/or a potential Grexit.
With deposits still flying from banks, and exceeding recently topped-up emergency ECB liquidity, we are edging ever closer to capital controls and a potential re-run of the 2013 Cypriot fiasco. The dovish Fed update from Wednesday evening is, however, still providing market buoyancy along with the BoJ overnight holding its accommodative stance.
UK 100 recovered to 6700 but remains hindered by the 200-day moving average 6744 which has served as resistance on both Weds and Thurs. The index may have bottomed at 6650, but the downtrend from end-May remains to be broken.
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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 could be in the midst of a bullish-double bottom reversal with support kicking in twice at 10800 and the prior highs of 11100 having been bettered and subsequently served as support. Upside to last week’s highs of 11400? Still within confines of falling channel with potential resistance at 100-day moving average 10533.
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Possible support
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Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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Like the DAX, the US Dow Jones could be in the midst of a bullish-double bottom reversal with support kicking in twice at 17700 and the prior highs of 18100 having been bettered and subsequently served as support. Upside of 400pts would take us to new all-time highs.
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Possible support
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Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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Gold has benefited markedly from the Fed update and weaker USD and Greek concerns. Having broken above $1192 to test end-May highs $1205, there is potential for the current pause around $1200 to be the flag of a bullish flag pattern and for another $30 upside to be delivered towards May highs if the flagpole distance ($1175-1205) can be repeated. The 200-day moving remains a hurdle at $1206.
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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