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Equity markets making a bullish start to the week, adding to the gains of Friday and Thursday’s bounce from lows helped by breaks of the February downtrends. And it would appear to be a case of bad news is good news again. This after poor data from China (Exports, Imports) and Japan (GDP, Industrial Production) added to hopes of more central bank intervention and stimulus which buoyed commodities prices. Add to this a continued waning of worries over the banking sector (despite many a headwind remaining) thanks to talk of the ECB buying bundles of bad loans from Italian banks and many are asking if we have found a bottom. Note Draghi speaking this afternoon. More soothing words before the March policy update?
UK Index holding above 5800 after strong 6% bounce from 5500. DAX 6% rebound already found resistance at 9235, which could now be support-turned-resistance. Wall Street gains slowing up around 16150, after 4% bounce from lows. Gold in continued retreat from recent recovery highs, broken below rising 8-day support $1210 as risk appetite returns to markets.
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UK 100 holding above 5800 rising support from Friday lows 5570. Break beyond Feb falling highs is significant but upside likely capped at 6000 – the ceiling of the index’s 4-month falling channel.
Solid Green line
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 rebound already found resistance at prior breached support level 9245. Progress made in breaking out from Feb downtrend, but like UK Index , still facing longer-term falling resistance from end-Dec and Nov.
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 gains looks to have slowed up as it approaches recent 16200 highs. Index still sideways in defined range, but a second bounce from 15500 means potential for a double-bottom pattern to deliver 1000pt gains if we can break beyond Feb highs 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.
Click here for help with Support & Resistance Click here for help with technicals
Gold’s retreat from recovery highs has accelerated as risk appetite returns to the markets and Gold bugs take profits. Likely some profit taking from those who called the $1050 bottom and are seeing gains eroded.
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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