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Equity markets back at fresh February lows, if not multi-year lows, as they react to Janet Yellen’s quasi mea culpa about December’s rate hike and concerns about financial market turbulence. There is also an element of indigestion following another batch of poor corporate updates (banks, miners, insurance) which adds weight to pre-existing concerns about the health of the global economy, while a further drop in the price of oil as Gold extends its rebound and Banks on the back foot again serves to drown out yesterday’s brief revival of bullishness.
UK Index broken below 5600 to test 3.5yr lows 5500. Wall Street broken below 3 support levels but 15600 holding for now. DAX given up 8800 to trade fresh 16-month lows 8700. Gold made fresh 9-month highs $1220 on renewed safehaven seeking and weak USD.
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UK 100 broken below 5600 to test 5500 3.5yr lows as 14-month downtrend accelerates. Potential for sell-off to go as far as June 2012 lows of 5440 should global growth fears and banking sector concerns persist. 5500 holding for now.
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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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DAX broken below 8800 to trade fresh 16-month lows although 8700 holding for now. Downtrends over 9-months, 2016 and February accelerated.
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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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US Dow Jones broken below 3 levels of support to trade levels last seen in late January. The index is holding up best versus UK Index and DAX, with the 15600 yet to be lost.
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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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Gold has made it above $1200 to test 9-month highs $1220, before droping back to $1215. Consolidating? Potential for continued USD weakness and risk-off sentiment to fuel safehaven seeking and send it to $1230, possibly even higher. However, RSI suggests overbought warning though.
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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