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Equity indices are handsomely in the green as risk appetite and momentum build now that the UK Index and Dow Jones have delivered bullish breakouts to trade 1-month highs, potentially kicking off inverse head & shoulders reversal patterns that take us significantly higher. A less hawkish/more dovish message from Fed Chair Janet Yellen after that weak US Jobs report and – more importantly – ahead of next week’s Fed policy update is helping the commodities space via a weaker dollar while Energy names are up as oil prices return to $50/barrel. Note financials benefiting from bargain-hunters assuming the worst of Brexit fears are baked in and that bookies should be believed more than the pollsters.
The UK 100 has broken above 6300, clearing the first hurdle for a bullish inverse head & shoulders reversal. The DAX30 has run up sharply to revisit Friday’s 10275 highs. Bullish flag? Wall Street/Dow Jones futures has broken strongly from 17925 to kick off a potential bullish head & shoulders reversal. Gold is stuck $1240-50 after dollar settles at lows.
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The UK 100 has broken above 6300 which clears the first hurdle the neckline) for a 250pt bullish inverse head & shoulders reversal that takes us beyond April highs. A rising RSI bodes well.
Watch levels: Bullish 6330, Bearish 6290
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 has run up sharply to revisit Friday’s 10280 highs. Will it pause before a breakout or retrace? Note 6-month falling highs resistance lurks around last week’s highs.
Watch levels: Bullish 10305, Bearish 10245
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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Wall Street/Dow Jones futures have broken strongly from 17925 to kick off a potential bullish head & shoulders reversal. Watch for the neckline to serve as support for any pull-back.
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 is stuck $1240-50 after dollar weakness settled. Bears point to RSI turning down from overbought and falling highs since yesterday. Bulls point to bounce form $1200 and potential for imperfect bullish flag.
Watch levels: Bullish $1251, Bearish $1238
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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