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Equities are on the back foot into the end of what has been a week of reversal from post-Brexit highs. Markets remain hopeful that the generous monetary policy circus still has life left in it to fuel the tandem rally of both equities and bonds, with the current stock correction likely overdue. This despite medium-term event risk looming large in the form of a November US election (could Trump really do it?), a US Federal Reserve still sounding like it’s itching to hike rates (a complacency-calming charade in our view) and the UK doing its utmost to prolong the path towards its game-changing divorce from the European Union. Risk off into the weekend?
The UK 100 is testing recent lows of 6850, with potential for a breakdown to extend the sell-off from Monday’s 14-month highs. The DAX 30 is testing July rising support but yet to trouble 4-month resistance-turned-support at 10480. Dow Jones futures are also testing yesterday’s lows 18530 in a falling trend since all-time highs at the beginning of the week. Gold is still sideways at $1348 in a narrowing range that could represent a bullish pennant pause before another up-move.
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The UK 100 is testing recent lows of 6850, with potential for a breakdown to extend the sell-off from Monday’s 14-month highs.
Watch levels: Bullish 6840, Bearish 6875
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 30 downtrend is testing July rising support, but with 10500 holding up so far and yet to trouble 4-month resistance turned support at 10480.
Watch levels: Bullish 10540, Bearish 10470
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
Dow Jones futures are also testing yesterday’s lows 18530 in a falling trend since all-time highs at the beginning of the week. Still in a narrowing trend.
Watch levels: Bullish 18550, Bearish 18515
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 still sideways at $1348 still in a 1-month narrowing range that could represent a bullish pennant pause before another up-move that extends its 2016 reversal and recovery.
Watch levels: Bullish $1352, Bearish $1345
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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