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Equity markets on the front foot for the new week, back testing their highs of last week. This comes from continued gains in the natural resources sector amid commodity prices strength from both a technical basis (Copper Nickel back at key resistance, Iron Ore breakout) and hopes that China (and indeed Europe) will deliver more equity market pleasing stimulus in due course and that a new stock market regulator kicks start its IPO market again. A buoyant oil price (even if fundamentals remain unfavourable) is adding to the bullish melting pot which is happily shrugging of political uncertainty in the US after the Donald trumped rivals again and in the UK which is now headed towards a 23 June EU in/out referendum with high profile Tory London Mayor Boris Johnson ditching PM Cameron and moving to the Leave camp.
UK Index trying to break above last week’s 6035 highs to make a proper break from the 3-month downtrend. DAX broken out from its 2016 downtrend and close to re-testing 4 Feb highs 9600.Wall Street having a go at regaining 16625 levels last traded mid-Jan. Gold broken below 2-week shallow rising support at $1208.
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UK 100 testing falling 3-month resistance but yet to make a meaningful break-out. Last week’s 6035 highs remain a hurdle before we can look towards end-Jan highs of 6125.
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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DAX broken out fro its 3-month falling channel and still in a solid uptrend from mid-Feb lows. This morning has already seen the index rally back to 4 Feb highs 9600 which if better could lead to upside beyond 9800.
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 holding its uptrend mid-Feb lows, potentially on track for retest of 16625 mid-Feb highs, although we not the prior rising support trendline may now serve as resistance to slow up advances towards 16800.
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 broken below 2-week shallow rising support at $1208 as equities go risk-on for the new week. However, potential support around $1200 could correspond with technical resistance for major equity indices which have rallied hard from mid month and showed fatigue on Friday.
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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