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Equities are making gains globally, with a weakened Pound Sterling affecting play in the UK whilst subsiding fears about the size of the impending US DoJ fine for Deutsche Bank are helping global markets during a market holiday in Germany. Questions about the ability of the German financial to pay a $14bn figure prompted a global sell off last week, resulting in the bank’s share price reaching 33-year lows. However, reports of a significantly lower negotiated figure between the two parties prompted a late rally on Friday and has continued through to this week as contagion fears diminish. In the UK, as the British Pound reached a three year low against the Euro and heads towards post–Brexit lows against the USD, the export-heavy UK 100 has finally seen a breakthrough of resistance at 6950 to post fresh 2016 highs. Having failed three times to break the mark in September, the index now looks to reach 7000 for the first time since June 2015.
The UK 100 has found support at August 2016 highs after breaking out of September 6950 resistance to year-highs at 6980. The DAX 30 has bounced from Friday’s September lows of 10188 to face resistance at the top end of two week falling channel, although the market is closed for a German market holiday so do not expect a large movement over the course of the day. DOW Jones Futures continue in a narrowing channel that began in mid-September, with the index trading in a narrow 18280-18340 range following Friday’s late rally. Gold is trading sideways in a narrowing $1300-$1350 channel after a brief morning rally, with any further announcements by the UK government regarding Brexit likely to boost price.
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The UK 100 ‘s breakout looks to continue towards the 7000 mark
Watch levels: Bullish 6865, Bearish 6840
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 has bounced to 10500 following the Deutsche Bank inspired rally on Friday. Note the market is closed for Unity Day.
Watch levels: Bullish 10575, Bearish 10410
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 have bounced from 18080 to trade towards the top end of a three week narrowing channel
Watch levels: Bullish 18350, Bearish 18270
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 has rallied from week-lows to $1317.
Watch levels: Bullish $1328.5, Bearish $1310
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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