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Equity markets made a welcome positive start to the week although already back from their best levels. The very real prospect of another leg down for oil towards $20/barrel, prolonging the commodity sector correction, is keeping sentiment in check, along with weakness in financials as Italian banks shares fall on political deadlock and fears of Eurozone crisis re-ignition. This is taking the shine off a strong bounce from Friday evening’s retest of multi-month lows. A US holiday may inspire some welcome calm after recent turbulence, but even after the worst ever start to the year for financial markets, it doesn’t mean a bottom has been found.
UK Index back below 5800 retracing the overnight bounce from summer lows. DAX bounced from 9400, but yet to trouble the Jan downtrend . Wall St regained 16000, but work to do before testing falling highs. Gold’s rebound stalled at $1090.
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UK 100 struggling to hold its head above 5800 after bouncing from a test of summer lows. Does the downtrend have legs? Or is a rebound on the cards?
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 found support at 9400, but yet to test summer lows or the January resistance trendline of falling highs.RSI out of oversold.
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 found support around 15830 thanks to shallow falling lows from September. The regain of 16000 was positive, but struggling to hold on.
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 rebound of rising support has stalled around $1090. Although equity market weakness as we write could see renewed interest in the safehaven. Pause before another leg up, or retrace?
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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