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The equity market rebound has taken us back to key levels, the UK Index now above 6200 and the DAX and Dow Jones testing 10100 and 17750, respectively. Note the UK Index and DAX have potential to embark on the second leg of bullish double-bottom patterns should decisive breakouts be delivered, while the Dow Jones could be prepping for an bullish inverse head and shoulders reversal.
This morning’s continued push north comes courtesy of a helpful combination of oil prices nearing $50/barrel on supply concerns and broker optimism while a weaker USD buoys the prices of commodities in general. Warren Buffet taking a slice of Apple to boost stateside sentiment is also helping, while upgrades for housebuilders hampered by Brexit fears and a watchdog let-off for the high street banks is helping on this side of the pond.
The UK 100 has broken above 6200,which should turn supportive, with potential for a bullish flag up to 6230. The DAX30 is testing close to recent resistance and key level 10100. Wall Street/Dow Jones futures testing the 17750 level to extend yesterday’s rally. Gold’s sharp retrace has brought it back to 2016 rising support at $1270.
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The UK 100 has broken above the key 6200 level which frees the index up to complete a bullish double-bottom (Black lines) at late April highs 6340. In the meantime, we are in the midst of a bullish flag pattern (blue lines) from yesterday afternoon’s lows that would complete at 6030. A drop back below 6200 could put us back in the familiar 6050-6200 range dating back to early March.
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 is testing near recent resistance and key level 10100. A break above could engineer a bullish double bottom towards 10450. A failure to overcome it, however, could result in a retrace to recent 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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Dow Jones futures are testing the 17750 level to extend yesterday’s rally and revisit the ceiling of April’s down channel at 17850. Note that a bullish break higher could unleash an 300pt bullish inverse head and shoudlers pattern that takes us above the ceiling of said channel and on towards 18050. Beware any retrace to May 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.
Click here for help with Support & Resistance Click here for help with technicals
Gold’s sharp retrace from its fake-out to $1288 yesterday and resistance at $1280 overnight have seen the safehaven retreat towards 2016 rising support at $1270.
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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