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Equity markets have started the week on a mixed footing, with a holiday-impacted Europe in the red (Whit Monday) versus small gains for US futures. Gains for the Mining contingent suggest that disappointing Chinese data is being taken as a driver for more risk-asset friendly stimulus from Beijing to counter slowing economic growth. Commodities are thus holding up well in spite of a stronger US dollar after stateside macro data surprised to the upside on Friday to reignite debate on Fed rate hike timing. Supply disruption and a lower US rig count have helped oil deliver breakouts to fresh 6-month highs, taking the price of a barrel a step closer to that key $50 level, helping buoy sentiment and keep equities above 1 -month lows. Although note safehaven Gold back above $1280 as equities remain pressured by 3-week downtrends.
The UK 100 is holding above 6100 in a 3-day narrowing pattern, showing appetite for a break to the upside. The DAX30 is testing 9870 rising support of a 2-day narrowing pattern. Bounce? Wall Street/Dow Jones futures look to have lost momentum from the bounce off 17500, hindered by the mid-month downtrend. Gold’s bounce has found a $1284 hurdle in May falling highs resistance.
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The UK 100 is holding above 6100 in a 3-day narrowing pattern. There would appear to be appetite for a breakout to the upside to keep the recent bounce alive. This would increase the chances of a double-bottom being successful towards 6350 if we can get beyond April falling highs and the key 6200 level. As we asked on Friday, are we back in that sideways channel (6050-6200) that was a range trader’s dream in March?
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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 found support at 9870 via rising support within a 2-day narrowing pattern within a familiar sideways range. Bounce or breakdown?
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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Dow Jones futures would appear to have lost momentum from their bounce off 17500, hindered by the mid-month downtrend. Bears highlight the falling channel from mid-April unabated; the Bulls claim a pause before another rally towards the ceiling.
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 bounce has found a hurdle in $1284 via May falling highs resistance which could temper near-term upside. The long term uptrend nonetheless remains alive and well with support at $1265-70.
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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