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Equity markets have given up their initial strength with Beijing regulatory intervention failing to appease dented new year sentiment as the prospect of another Summer-style Chinese rout (the one which made the Fed hold off from hiking) remains a real possibility. As we said before year-end the main risk for 2016 is that 2015’s drivers remain dominant (slowing China, low Oil price, deflationary pressure, divergent monetary policy, uneven economic recovery, geopolitics in its many guises). And whilst only a day and a bit into 2016 so far it likes like a case of ‘plus ça change, plus c’est la même chose’.
UK Index back testing 6100 after 6170 proved too much. DAX making a retest of yesterday’s lows 10250 after failing at 10400. Wall St recovery failed around 17200, now back to 17100. Gold still in pursuit of break above 2-month falling highs at $1075.
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UK 100 recovery lost momentum at historical resistance 6170 and retraced to 6100. Still rising lows from mid-December, but equally still in a longer-term falling channel (see yesterday’s chart) which could see us retrace further.
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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 support at 10200 after failing at 10400. Another bounce or are we headed for a breakdown?
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 managed to recover from 17000, however, it was short-lived, unable to hold above 17200. Now officially in a shallow falling channel, but holding above 17100 Nov and mid-Dec low.
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 breakout remains work in progress, with the trend of falling highs bettered but the round number $1080 yet to be troubled markedly.
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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