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Equity markets have made a poor start to the week, still struggling to hold onto recent gains as bullish sentiment wanes and profit-taking continues ahead of central bank updates from the US Federal Reserve and the Bank of Japan. While the former is likely to hold pat the latter has hinted at cranking up policy easing a notch. Dollar-denominated commodities prices (notably oil, as per usual) continue to vacate last week’s recovery highs with risk appetite hindered by a USD bounce that can be pinned on ECB President Draghi weakening the EUR. Jitters about China’s debt load simmer on while US corporate results fail to inspire. Markets also await key GDP updates from the UK, US and EZ for fresh evidence about the global growth picture.
UK 100 sell-off found support at last Monday’s 6260 lows. DAX30 bounced at 10230 to keep April uptrend alive. Wall Street/Dow futures rebounded off 17900. Bullish double-bottom? Gold broke below $1245 as we suggested last week with a bearish head & shoulders top formation. Bearish flag next?
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UK 100 sell-off found support at last Monday’s lows of 6260. Feb and April uptrends being undone, or just a consolidatory correction before resumption of the 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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The DAX has managed to engineer a bounce off 10230 to keep April’s uptrend alive. Can it get back above 10300? The Fed uptrend intact until any breach of 9800.
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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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The Dow Jones could be on for a bullish double-bottom if it can get back to 18000 and break the trend of falling highs from last week. Bears must live with likely support at each of the pause levels we had on the way up in April.
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 broke below $1245 via the bearish 4-day Head & Shoulders top pattern w highlighted on Friday. Could a bearish flag pattern seal its completion down to $1217 and break the April uptrend?
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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