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Equity markets starting the new month in the red after yet more disappointing China Manufacturing data (3yr low, contraction) increases concerns about slowing of world’s #2 economy. This saw Asian equities bloodied overnight, even if China’s increasingly important Services sector remains in growth territory (albeit with slowing pace of growth).
Volatility around the European open suggests investor skittishness about China, global growth, Oil supply, monetary policy direction and the effectiveness of global stimulus measures. US Jobs data could maintain USD and thus market jumpiness through Friday.
Gold’s August bounce from multi-year lows continues thanks to support around $1120 last week amid global market volatility as investors declare renewed interest in a safehaven metal whose price had been hitherto severely depressed through 2015 by equity strength and a relentlessly strong USD ahead of a US rate rise.
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UK 100 pulled back from 6250 after encountering resistance from 10 Aug falling highs. After breaking below 6150 neckline, potential for Thurs-Fri activity to have been minor 100pt Head & Shoulders top pattern which completes at 6050. Note uptrend from 24 Aug now breached and already served as resistance his morning.
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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 still struggling under weight of falling resistance from early August. While a meaningful breach of 10,200 could lead to a relief rally, the same below 10,000 could lead to a visit of recent lows.
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 futures increasing their sell-off from recent rebound highs 16,700. The breach of 16,500 overnight signals an end to the trend of rising lows from 23 Aug.
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’s rebound from August multi-year lows continues thanks to bounce off $1120 rising support last Thursday. Renewed market volatility benefiting the safehaven metal which had otherwise been ignored through 2015.
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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