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Equity markets have had a change of heart. Two in fact. After initially surging on the yesterday’s ECB headlines they subsequently sold off hard on Draghi’s ‘no more rate cuts’ comment (how very short-sighted). They have since recovered after realising that Super Mario still delivered more than markets were anticipating (more QE, wider QE, more rate cuts, attractive LTROs) and, more importantly, is a man of his word, prepared to do ‘whatever it takes’. So we may well be trading down for the week, but we are well off the lows (in some cases back just shy of highs) and with some bold central bank action safely banked. The latest effort to reignite growth and inflation in a struggling eurozone with some nice help for risk assets to boot.
UK Index recovered to trade within its recent 6100-6200 consolidation zone. DAX back above key 9600 level. Wall Street recovered to trade around its recent 17150 highs. Gold has turned back from making fresh $1285 highs as appetite for risk-appetite regains poise and safehaven demand weakens.
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UK 100 made strong bounce from just shy of 6000. Back in recent 6100-6200 consolidation zone. Still potential for this to be a pause before another leg higher, with the ECB-inspired dip being merely a bump (albeit quite a big one) along the road. Imagine if Draghi hadn’t said what he did. Where would we be now?
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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 back above key 9600 level which is the upper/lower hinge-point for the last month’s range. It’s been an interesting 24-hours bu have we regained enough poise to take us back towards 1000 highs?
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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 recovered to test recent highs. Real potential for a breakout with the 4-week uptrend still very much alive. Holding above the 200-day moving average is significant.
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 has fallen back from fresh $1285 highs, as demand for safehaven demands wanes as a result of rising risk appetite. Is a channel of sorts developing. SOme range trading to be had?
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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