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UK Equities flat thus far this morning, yet not devoid of movement since the open as the inevitable tug of war between the usual drivers – China growth, GLOBAL growth, US interest rates – took UK 100 up above 6400 then promptly right back down past where it opened. This despite an almost certain push-back for a US rate rise until 2016 while perhaps being due in part to a lack of confidence in the accuracy of Chinese numbers which did beat forecasts whilst indicating a reduced growth rate. Big picture issues are testing the technicals as well – with a possible second phase of a bullish flag pattern under threat (see UK 100 daily chart).
Germany’s DAX may be preferring to take a slump in Chinese industrial production as a precursor to continued economic stimulus, although we note banks outperforming amid mixed results from stateside peers, while US Dow Jones futures remain largely unmoved by all of this. Watch for delayed reaction as US traders awaken!
Gold is also flat so far (like the US Dollar with which the commodity enjoys a particularly close relationship) as investors also try to work out whether bulls or bears will gain the upper hand concerning risk sentiment around those Chinese numbers. Bad meaning good? Bad meaning bad? It’s a mixture of both at the moment. No clear direction, plenty of volatility.
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UK 100 testing the ceiling of a 10-day falling channel that could be consolidation within a bullish ascending triangle pattern ahead of further gains to upside. Note, however, macro-issues likely to challenge while daily RSI strongly supported by rising lows, not yet 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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Germany’s DAX still struggling to overcome the falling trendline around 10200. Support found at rising lows above 10000 reinforce potential for a breakout, however. Note near 800pt up move from late Sept may have lost steam.
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
US Dow Jones futures safely supported above 17000 by a 1-month trendline. 17200 remains a hurdle while a pull back as far as 17100 should’nt worry bulls untowardly, who will be eyeing a third test and potential breakout above resistance.
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
Gold pulling back from Oct uptrend but still within the confines of a longer term, 2.5 mth rising channel. 200-day MA still support around current levels.
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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