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Equity markets around break-even, consolidating after recent sell-off from banking sector worries which have grown exponentially and added to global growth concerns and depressed commodities to sap risk appetite and keep the start to February as tough as the whole of Jan was. Have markets got things of their chests, or is this just a pause before another leg down and revisit of prior lows?
UK Index consolidating 5660-5730 with ‘potential’ to have bottomed out. Wall Street posted rising lows and broken beyond 2-day falling highs at 16000. DAX consolidating 8885-9040 after yesterday’s 15-month lows. Gold off its best levels of $1200 7-month highs as risk appetite regains some poise.
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UK 100 consolidating 5660-5730. Potential breakout to lead to rally to 5830 if we project the channel height upwards. However, still in long-term downtrend meaning a breakdown equally possible given the bias for bad news in markets.
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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 consolidating like the UK Index , deciding on its next move. Break-out from channel could see rally equating to 150pt height of channel. Development of rising lows this morning could be bullish. Still in a major 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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US Dow Jones could be developing into a rising wedge formation which could be bullish for a retrace of the recent declines from 16500.
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 reversal may have gone too far too fast, although it did deliver a mirror image of the sharp Oct/Nov declines to complete a cup pattern. Potential for retrace to shallow rising support before uptrend resumes if equity markets steady, however, any more panic could easily see another breakout >$1200
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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