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Equity markets are mixed this morning. Analysis of the drivers points towards temporary safe haven seeking rather than profit taking as a bounce in the USD Basket coincides with a rebound in the Gold price and a little Yen strength also. The UK’s UK 100 is probably digesting some tepid corporate earnings and may well also be quiet ahead of today’s BoE rate announcement and meeting minutes – the minutes more of interest to stock market participants, since interest rates are certainly set to remain unchanged. Germany’s Dax is benefitting from a weak Euro.
Wall St futures are down a little following some disappointing retail sales data and after a bout of Chinamania took equities sharply higher across the board yesterday.
Technically, the UK 100 has sold back a few points from 6370 with support at 6335, DAX30 is positive, moving up towards the key round number 10100, Wall Street/Dow futures are backing off from Oct 2015 resistance and Gold has retreated from $1244 after a strong rally this morning.
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The UK 100 is down yet stable so far, with the ceiling of April’s rising channel providing support in the event of a further pullback. The daily RSI is turning over.
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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The DAX continues to track higher on a weak Euro. However, note that higher highs on the index coinciding with lower highs on the RSI indicates potential for a correction today. Daily RSI is still not yet overbought 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.
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The Dow Jones has come back from those Oct/Nov resistance levels, yet remains stable. potential for more safe haven seeking to usher the index back towards 17843 after the RSI broke below its 2-day rising lows.
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 has broken out above 2-day falling highs yet has met resistance at $1243, which coincides with the 7-apr high. Too early to call it now, but look out for a pullback towards $1230 forming the second shoulder of a bearish H&S top.
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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