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Equity markets on the back foot this morning, with a backtracking in the oil price (yes equities and oil still excessively correlated) and weak China/US macro data weighing on the recent stock market recovery. Weak results from BP are weighing on the energy sector, adding to S&P’s cuts yesterday evening to ratings and outlook on several major commodities names (BP, Shell, BHP, RIO). All the while fears rise of further US stockpile building and hopes fade of a coordinated global output of counter the supply glut in the key commodity that’s now driving markets daily.
UK 100 broken below 6000, potentially putting recent uptrend at risk. DAX testing shallow rising support at 9640. Wall St sideways around 16300, off ceiling of rising channel. Gold at $1125 apex of 2-month rising and 8-month falling trends.
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UK 100 broke testing trend of rising support which could put in jeopardy the uptrend reversal from 3.5yr lows. Energy sector weakness weighing after S&P cuts and BP results.
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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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The DAX has fallen back to test the lows of yesterday and the trendline of shallow rising support dating back to 22 Jan. 9640 holding for now, but could the sideways consolidation be over? Beware falling highs from yesterday’s best 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.
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US Dow Jones still in rising channel but sideways off the ceiling. Holding above 16300 for now although a retrace to 16200 wouldn’t harm the uptrend reversal.
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 reached highs of $1130 overnight on safehaven demand, however, the pullback leaves it near the apex of conflicting trends: 2-month rising versus 8-month falling. Uptrend so long as $1120 holds, but a break beyond $1130 could mean upside to $1190.
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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