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Equity markets are already well off their worst levels following news of fatal explosions in Brussels at its airport and on its metro network. While nothing has been confirmed, memories of Paris last November are of course still all too fresh. As I have said many times before it is a hallmark of the 21st century that the markets’ reaction to such events can be so muted. On the flip-side it is equally encouraging to see such growing defiance to the horrors of the world in which we now live. While travel stocks had their knee-jerk reaction sell-off and safehavens were bid, relative calm has quickly returned.
UK Index bounced off 6110 to keep the index in its March’s channel. DAX bounce off recent lows 9750 to maintain 6-week rising support. Wall Street found support at last week’s 17520 pre-breakout resistance. Gold understandably benefited from fresh safehaven seeking but has since pulled back as risk assets like equities regain poise.
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UK 100 tested fresh 7-day lows before bouncing. This keeps the index in its sideways channel offering the chance of a proper breakout above 6200. Bears focusing on the fact we are back below 9-month falling highs and the 200-day moving average.
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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 bounced off recent lows 9750 which keeps it in a 6-week rising trend. Can it bounce back to test 10000? Or is a breakdown on the cards?
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 rebounded strongly towards recent 2016 highs. Back above 17600 will please those bulls eyeing 17900 while the Bears point to the steepness of the recent 13.5% gains and potential for retreat./
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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While Gold initially jumped on news of the Brussels explosions, it has since sold back as equities rebound. Anther narrowing pattern has developed around $1250, which could break either way, although if it is to be considered a continuation pattern then the prior move was of course upward via the recent strong 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.
Click here for help with Support & Resistance Click here for help with technicals
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