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Equities on another downer as the commodity sector remains under considerable pressure, the Anglo American AAL) dividend cut rippling through and generating uncertainty about income sustainability elsewhere in the face of major sector adjustment. China inflation data adding to evidence of slowing export economy and thus demand for materials, while further weakness in oil is also keeping energy names under the cosh. All this as we tip-toe closer to a US rate rise next, which could see the commodity currency USD strengthen, adding insult to injury.
UK Index found support at 6100 but bearish flag pattern couple yet complete around 6075. DAX broken below intersecting support at 10700. Wall St testing 3M intersecting rising support at 10500. Gold at $1075, right at the apex of a narrowing triangle .
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UK 100 weakness taken it back to 6100, but not quite as far as 6075 where we would complete the bearish flag pattern we have been harping on about.
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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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Germany’s DAX broken below intersecting support at 11700 which could open the door to declines as far as 10300 from where we broke up sharply in mid-October.
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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 retreat brought it back to rising 3M support at 17500. While a breach would scupper this hitherto supportive trendline, recent lows coould slow the declines before another further rising support line around 17400.
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 is sitting right a the $1075 apex of a narrowing pattern, awaiting a break of with the trend of rising lows or falling highs. Potential for rising channel since Monday to prevail?
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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