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Equity markets posting gains for this first day of the month, but still hindered by major bugbear technical resistance levels. While markets have decided to focus on the positive elements from Chinese PMI data, namely progress in Services as the world’s #2 economy evolves from export- to consumption-led. However, this has only got the indices so far from yesterday’s lows. After strong gains of late, investors may be waiting to see how big ECB President Draghi’s stimulus bazooka is on Thursday, to gauge whether enough to offset the baked-in mid-month hike in US interest rates, something which Friday’s US jobs report is likely to vindicate.
UK Index tested but failed again at 6400. DAX still testing 9-month intersecting resistance around 11400. Wall St still held back by 6-month shallow falling highs 17890. Gold bounced of $1053 to test 3-week falling highs at $1075.
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UK 100 tried again to get above 6400, and to be fair it did better than last time. However, it remains hindered by a pair of resistance trendlines around 6400. Will falling highs hold the index back, or will the intersecting trendline from mid-October allow for minor tests higher?
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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Germany’s DAX continuing to test the trendline of 9-month intersecting resistance at 11375. Still in uptrend, helped by prospect of further ECB stimulus but possibly needing something else to engineer a breakout.
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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US Dow Jones futures still stifled by July shallow falling resistance at 17900. Flat index versus falling RSI means negative divergence with price. Index set for a pullback?
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’s rallied strongly from new near 6r lows, but still held back by trendline of falling highs. Pause before breakout? Drivers would be a weaker USD, some safehaven seeking or a short squeeze. Or another trip south?
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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