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Equity markets easing back from their best levels, after strong performances from both Asia and the US overnight. This stemmed from positive US data being taken as bolstering the case for further US rate rises and better than expected Australian GDP being well received on account of the country’s close links to China, even if Moody’s fired a warning shot on the latter’s debt rating. We remain to be convinced about further US hikes, given the January sell-off and ensuing financial market volatility, as well as directly opposing moves by central bank peers. In which case overall policy is set to remain accommodative – good news for equities. Higher commodity prices are also helping this morning along with some technical breakouts (including the UK Index , Nikkei) which have taken index rebounds beyond 10%.
UK Index rally pulled back below 6200 after breaking beyond key 9-month falling highs. DAX rally found resistance in December falling highs and the best levels from the early Feb at 9850. Wall Street peaked at the 16900 ceiling of 9-week rising highs. Gold found support at 1-month rising lows $1225, bouncing in-line with equity pullback.
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UK 100 made a break beyond major 9-month falling highs at 6120. Does this mean the long term downtrend is finally over? Can we get to 6400? The rally from 5500 lows has now extended to 13%, but is it too steep?
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Possible support
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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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DAX uptrend comes up against a hurdle in 9850 which coincides with December falling highs and the best levels of early February. Uptrend still valid, but perhaps a little extended. Does this third upper touch puts us in a new channel?
Solid Green line
Possible support
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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 looks to have topped out after a strong bounce from 3-week rising support at 16500. Resistance crept in at the ceiling of the recent trend of rising highs. at 16900. Back to 16600?
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 has found support via Feb rising lows at $1225, in0-line with the mild equity pull-back from highs. Potential for revisit of $1245 falling highs as we move into the apex of a narrowing pattern.
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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