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Equity indices are nursing losses this morning in reaction to China’s current export of choice – bad news – after data showed imports contracting for an 11th straight month, even if exports contraction was less bad. This highlights the difficult transition China faces moving from export to consumption-led model and delivers another clear signal to an over-supplied commodities space that considerable demand for raw materials is lacking. And this just days before we get our latest suspicious read on China GDP. While the trade data heightens speculation/hopes of more government/PBOC stimulus, it likely just adds to global risks and thus pushes back Fed and BoE rate hike assumptions. And while the markets like loose policy they would still prefer growth.
UK Index back close to testing 6300 breakout. DAX found resistance at Aug-Sept falling highs 10180. Wall St pulling back towards its 17000 breakout. Gold fallen back after failing to better $1170 August highs.
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UK 100 fallen back from 6400 but yet to test 63000 breakout. This means uptrend still valid and after 50% Fib retrace was resistance at 6450, hopefully the 38.2% retrace will be supportive around 6285 should weakness persist.
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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 found a hurdle in intersecting trendline from June falling lows across Aug/Sept falling highs. This stifles the recent steep uptrend and could engineer a revisit of recent 9500 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 holding above 17000 breakout, and so still in uptrend, taking a pause for breath. RSI topping out, but not 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 failed to better the $1170 highs of late August and has dropped back to the $1153 level at which it broke out from its long term downtrend. Support for another attempt higher, or full retrace#?
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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