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Equity markets have stemmed their declines and regained poise. This sees continuation of what the bulls hope turns out to be consolidation before another leg higher. The driver could be a run of supportive central bank updates (ECB, BoE, BoJ, Fed), beginning with the ECB tomorrow. Draghi wouldn’t dare disappoint again would he? The fact that European futures held up so well overnight is, in our view, reassuring in itself, suggesting optimism that a mix of bold action and soothing rhetoric will give bullish sentiment the fillip it needs after understandably waning lately.
UK Index consolidating 6120-6150 into apex of narrowing pattern. DAX bounced off 9700 rising support again. Wall Street consolidating 17000-17050 into apex of narrowing pattern. Gold weakness stemmed by bounce off $1250 support .
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UK 100 trading into the apex of a narrowing pattern. Which way will it break? Normally it’s a continuation pattern, and we entered from the south which supports the case for recent sideways activity to be consolidation of the prior gains.
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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 holding rising support at 9700 after another bounce off the 1-month trendline. Can it make another attempt at 2-month highs?
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 consolidating into the apex of a narrowing pattern, much like the UK Index . Uptrend still valid, mnaing potential for breakout higher towards 17500, especially while the index trades above the 200-day MA just below 17000.
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 backtrack from 13-month highs has found support at $1250. Although any equity market rally (ECB-led?) could result in a drop back to rising support just north of $1240, or even break the uptrend as the safehaven is shunned in favour of risk assets.
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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