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Equity markets still mostly marching north, unperturbed by a weak US manufacturing print hot on the heels of more poor Chinese data. If anything, ahead of what is expected to be US employment data that vindicates a mid-month Fed rate rise (ADP today, NFP Friday) investors are taking yesterday’s US manufacturing read as forcing the Fed to be very measured and gradual with any further rate rises, so as not to derail economic recovery, not just domestically but the world over.
Nonetheless, DAX hindered by concerns that ECB President Draghi’s policy update might underwhelm tomorrow after such hype. Although, after January saw him move from a ‘talk speaks louder than actions’ approach to a surprisingly generous QE programme, could a new bold approach trend be the markets’ and the German index’s friend?
UK Index broken out above 6400 to clear 6-month falling highs. DAX uptrend held back by 9-month intersecting resistance around 11400; pullback already found support. Wall St still lingering just below resistance at 17900. Gold nearing apex of narrowing pattern at $1068, still in downtrend.
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UK 100 broken above 6400 to clear 6-month falling highs resistance. This keeps the uptrend alive and means a revisit of Oct highs 6490 and 5-month falling highs 6500 is possible.
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 unable to break above to major trend-line of resistance at 11400. Still in uptrend, helped by prospect of further ECB stimulus, but worries about Draghi disappointing have taken the shine off recent gains. Decent twin support at 11250
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 trading just below 5-month falling highs resistance at 17900. A decent test and decisive breakout above this and round number 18000 required for us to rally on towards May all-time highs 18365.
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 off its recent lows but bulls still facing stiff competition from the long term bears which have had it in a solid downtrend since September 2012. Nearing apex of narrowing pattern offers potential for a break, however, as a continuation pattern the assumption would be downward unless the USD pulls back hard or safehaven seeking rises.
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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