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Equity markets coming off their highs this morning with the UK 100 and Wall St overnight rebounds stalling, the DAX still hindered by August falling highs but general market volatility (China, Oil) maintaining safehaven Gold’s recovery from multi-year lows. Uncertainty still rife regarding global growth following mixed US and Chinese Manufacturing reads and Canadian and Aussie GDP misses, all the while markets debate whether the US Fed will break the seal this month and raise interest rates.
Note the IMF’s Lagarde warning about financial market volatility and risks spilling over from one economy to the next (China rebalancing, US rates rises, Japanese growth slowing and commodity price falls all represent headwinds) while Goldman Sachs stays positive on China and Morgan Stanley issues its first ‘full-house Buy alert’ on international equities since correctly doing so in early 2009, suggesting the worst of the summer rout may be over for global equities. Note it also successfully called the top in 2007.
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UK 100 bounce from 6000 turned back at 6100, maintaining trend of falling highs from early August. Break of 6200 needed to inspire bulls while bears look for break below 6000 to allow for full retreat to 5800.
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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 encountered resistance again via trend-line of falling highs from 10 Aug at 10020. Breakout above 10,400 now likely needed to attract Bulls while Bears eye a breach of overnight lows 9860 to support hopes for full retracement to 2015 lows 9300.
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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Rebound by US Dow Jones futures stalled at 16290, before testing down trend-line from mid-August at 16425. While a break above the trend-line would likely be welcomed, a bettering of 16700 likely needed to convince.
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 $1080 continues thanks to last week’s bounce off $1120 last Thursday and trend rising lows since. Investor uncertainty and market volatility benefiting the yellow metal, although a break above yesterday’s highs and $1150 likely needed to see a renewed rush for the safehaven.
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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