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Equities have again gone positive after starting the day in the red, with the UK ‘s UK 100 staging a sharp pop upwards to test its April falling highs. Confidence there may have stemmed from UBS Boss Axel Weber telling CNBC that a US rate hike would not be a bad thing (i.e. what’s all the fuss about?), yet maintaining he didn’t think it would move anyway until better signs of economic strength are evident.
An upbeat tone looks to have temporarily stifled the hitherto negative pressures stemming from (mainly non-voting, remember) US Federal Reserve hawks, who’ve seemed pretty chuffed with the effect they’ve had on the markets over the past week or so. European stocks have also popped higher on a weaker Euro after Sterling went up on the back of a new poll by the Telegraph suggesting the UK’s over-6os, men and Tories (the three groups relied upon by Brexiteers to vote ‘leave’) are now bedding down in the ‘remain’ camp.
The UK 100 ‘s spike upwards has paused around resistance at 6170.The DAX30 has also popped upwards on a weaker Euro versus the Pound Sterling. Wall Street/Dow Jones futures are still trading around that bearish head & shoulders neckline. Gold continues to decline towards its 100-day moving average on a resilient USD.
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The UK 100 has gone up above recent highs 6170 and is testing the 200-day moving average, with bulls hopeful a break above will preclude another leg higher towards the May channel ceiling 6220. Bears as always looking for the 6170 level to hold firm and a pullback after a sharp, short term up-move. RSI overbought.
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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 hit resistance just above 9920. RSI heading back down from overbought, suggesting a short term down move is on the cards – indeed this may already have begun. Look out for a wide, 160pt falling channel forming.
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 consolidating near resistance at 2-day falling highs. RSI has peaked but is still currently bullish. Note a narrowing range.
Watch levels: Bullish 17600, Bearish 17430.
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 is finding the going tough today with that USD resilience and equity market strength hindering northerly progress. If Gold manages a break above intersecting resistance then bulls will look to $1250, yet this seems unlikely given current conditions.
Watch levels: Bullish $1261, Bearish $1241.
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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