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Equity indices are trading fresh recovery highs despite political event-risk looming large in the form of a long-awaited UK referendum on EU membership. A cloud of uncertainty (literally, with rain to boot) hangs over Blighty, while the continent and global financial markets look on with fascination given the far-reaching influence its democratic decision could have. Referen-dominos? But strength in UK equities and Sterling (both holding up around recent recovery highs) suggests confidence that a Remain vote will prevail, the Undecided voting for the status quo, helping avert potential financial, economic and political crises. However, opinion polls remain extremely tight (more to come today) meaning it’s ‘squeaky bum time’ for all those involved in financial markets right through ’til the early hours of tomorrow morning.
The UK 100 is pushing on from its break above 6300, extending its six-day pre-referendum recovery rally. The DAX30 has broken beyond 10200 to test 2-month falling highs while Wall Street/Dow Jones futures have broken beyond 2-week falling resistance at 17900. Gold bounced off $1260 lows, but held back by falling highs at $1270.
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The UK 100 has made it as high as 6350 in its pre-referendum rally. Can it continue to 2016 highs of 6430? Or are we set to retrace to lows of 5900? Note RSI holding overbought territory.
Watch levels: Bullish 6365, Bearish 6280
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 DAX30 has broken beyond 10200 to test 3-month falling highs. A UK Remain vote could help with a revisit of 2016 highs while a Leave could seal a significant retrace
Watch levels: Bullish 10350, Bearish 10290
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
Wall Street/Dow Jones futures are testing 3-month falling highs at 17975
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 bounced off $1260 lows, but held back by falling highs at $1270 as it awaits UK referendum news for its next driver up or down based on safehaven demand.
Watch levels: Bullish $1270, Bearish $1265
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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