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Equities are posting modest gains to start the new week still content with Fed Chair Janet Yellen’s dovish assurances last week about a cautious path for US rate rises coupled with more US macro data suggesting continued economic recovery. M&A and telecoms sentiment has been dented by the collapse of the Orange/Bouygues deal in France. Greek debt woes also back to the fore as debt relief talks resume, with an apparent veiled accusation from Athens that the IMF is pushing the beleaguered nation towards default or at least for the Eurozone to sort the situation out on its own. Oil struggling under the weight of…nothing new after Saudi Arabia said it wouldn’t agree to any production freeze without Iran on board. A USD off its Yellen-inspired lows is also hampering commodities.
UK 100 broken up above 3-day falling highs at 6155. DAX30 making a bullish test of 9850. Wall Street above 17800 is putting peers to shame with continued fresh multi-month highs. Gold back below pivotal $1225 once again.
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UK 100 found support overnight at 6130 which has allowed it to bounce up through falling highs dating back to mid last week. This means a chance that recent highs 6220 are revisited. Otherwise, the index remains in a 5-week 6070-6220 sideways range itself within a 9-month downtrend.
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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 still trying to make headway from Friday’s bounce off 9670 intersecting March support. While 9850 has been tested, the index remains under pressure following its rollover from a bearish double failure to break out at at 10100 and break of Feb rising support at 9900.
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 Dow Jones is holding its steep uptrend, outperforming peers with its break above 17800 to fresh multi-month highs on the premise of lower US interest rates for longer bolstering risk appetite. RSI may be overbought, but could well stay this way. And 50-day pointing towards a golden cross with the 200-day MA.
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 back from what has become a pivotal $1225. Still in short-term downtrend from recent $1289 recovery highs , but equally still in uptrend from $1050 multi-year lows. Stronger USD and equity market resilience denting demand for the traditional safe haven and inflation hedge.
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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