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Equity markets have turned back from their highs again on a combination of misplaced central bank disappointment and commodity price correction. While the Bank of Japan understandably held fire on further stimulus, allowing the dust to settle on its late-Jan dive into the deep end of the negative interest rate pool, it offered a more downbeat economic assessment which has fueled worries about central banks losing their mojo. Markets are also prepping for the latest views from the US Federal reserve tomorrow, which could have far-reaching implications should it prove over-optimistic (rate hike positive) or indeed too negative (economy struggling). Does this suggest market upside is capped? Raw material prices further retreating from recent highs, notably oil (we have said for weeks/months to just forget about any production freeze), is also weighing on sentiment.
UK Index struggling under the weight of falling highs at 6140. DAX turned back from 10000 ceiling of rising channel. Wall Street back below 17200. Gold broken below rising support at $1240.
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UK 100 managed to test 6200 again yesterday, but has struggled since. While we closed higher last night, overnight weakness has continued with falling highs from 6190. A meaningful break above 6200 is still required to attract the extra bulls needed to extend the Feb rally.
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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 turned back from 10000, having been checked by the ceiling of its rising channel. Potential for correction back to channel floor just above 9500 should 9900 support give way. A break through 10000 could lead to a sharp rally.
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 back below 17200 as the duo of trendlines hampers its progress. While a small retrace may be on the cards, rising 1-month support is not far away at 17050. A break above 17300 would get the bulls excited.
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 has found support again, this time at $1220 as the retreat from last Thursday’s 13-month highs continues. Steep uptrend from mid-Jan now under threat with gold now consolidating into a March sideways channel.
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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