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Equity markets are staging a comeback from last week’s dismal showing as investors react to the latest episode of the soap opera that is the 2016 US Presidential Election. A second all-clear for Hillary Clinton from the FBI has seen renewed market confidence that the Democratic nominee will take the White House, albeit with a much finer margin than before the Bureau’s re-investigation into her private email server use. The resultant surge in the USD, coupled with slides in the Pound, Euro and Gold (helped in part by ongoing Brexit commentary from PM Theresa May on her two-day trade mission to India) has seen indices bouncing across the board.
The UK 100 is the biggest winner so far, rallying by 100pts on the FBI news, breaking last week’s run of negative sessions that culminated in a 300pt weekly loss. Will the Clinton rally lose steam ahead of tomorrow’s opening of the polls, seeing the index turn back towards 6700 or can the UK Index build on this early momentum to return to 6800 or above? The DAX 30 has also bounce at 200 day MA support, although has hit resistance at 10450. Can it break out or will it turn back towards that MA support at 10200? Dow Jones Futures have already bounced over 220 points from two-month lows to rejoin its two month narrowing pattern trading channel. When markets open stateside this afternoon will we see momentum declining or an even stronger rally resulting in a breakout from two-month falling highs resistance? Gold, on the other hand, is the big loser of the day, paring gains made last week back to pre-investigation levels and now challenging October resistance turned support at $1285. Breakdown to $1275 support or bounce back to $1305?
The UK 100 is the biggest winner so far by 100pts on the FBI news, breaking last week’s run of negative sessions that culminated in a 300pt weekly loss. Will the Clinton rally lose steam ahead of tomorrow’s opening of the polls, seeing the index turn back towards 6700 or can the UK Index build on this early momentum to return to 6800 or above?
Watch levels: Bullish 6805, Bearish 6710
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 also bounced at 200 day MA support, although has hit resistance at 10450. Can it break out or will it turn back towards that MA support at 10200?
Watch levels: Bullish 10460, Bearish 10285
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 have already bounced over 220 points from two-month lows to rejoin its two month narrowing pattern trading channel. When markets open stateside this afternoon will we see momentum declining or an even stronger rally resulting in a breakout from two-month falling highs resistance?
Watch levels: Bullish 18190, Bearish 18080
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, on the other hand, is the big loser of the day, paring gains made last week back to pre-investigation levels and now challenging October resistance turned support at $1285. Breakdown to $1275 support or bounce back to $1305?
Watch levels: Bullish $1298, Bearish $1283
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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