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Equity markets are struggling this morning, with circa 0.5% losses across the board (UK Index , DAX, Dow) as traders take profits in a generally unpredictable, short week ahead of New Year holidays. The old adage ‘blame oil!’ is being banded around because it’s easy to say, but the reality is there’s little driving markets this week save a lack of drivers! Half the world’s on holiday.
UK 100 has broken down out of the bearish rising wedge pattern we highlighted in the morning report while still supported by two moving averages within its late August rising channel. DAX remains within its own Sept uptrend, inside a shorter term bearish pattern. Wall St has hit resistance at Dec falling highs and Gold remains in a narrowing pattern.
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UK 100 has broken out of a bearish rising wedge pattern and found support around 6265. Back-up at key 6250 encouraging with the uptrend from 13 Dec lows still very much alive.
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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 sold off from Dec rising resistance, finding support around 10775. With the index now near the apex of its rising wedge pattern, the outlook is less bearish and a move upwards could be on the cards if 10800 becomes support. Dec uptrend still intact.
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 have come back from December falling highs; 14- period RSI back from overbought. Note support at 17675 with potential for another leg higher towards ceiling of 2-month sideways range while negative momentum divergence over Xmas could see a pullback as far as 17600.
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 is has broken downwards out of its narrowing pattern and is trading below key level $1068.
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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