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Equity markets have made a solid start to the shortened Easter week (don’t count your chickens…., don’t put all your eggs…. puns very much intended ). Off their lows already, the German index is faring rather better than peers thanks to a reversal of some of last week’s Fed-led USD strength, translating to some welcome EUR weakness to boost German exporter stocks and some M&A speculation. Otherwise sentiment buoyed by hopes that China is acknowledging high corporate debt levels before things get out of hand whilst simultaneously easing curbs on margin lending to stimulate equities and spur market recovery from recent lows. Investor bullish sentiment still supported by belief in accommodative monetary policy for longer. Commodities off their best levels after a strong run, but still in uptrends.
UK Index off its lows and back testing 6200, but with 6240 to beat. DAX having another go at clearing the 10000 hurdle. Wall Street holding above 17600 continuing after last week’s breakout at 17400. Gold found support at $1240 amid its retreat from recent highs.
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UK 100 off its overnight lows and back testing 6200. Trading in the middle of recent shallow rising channel. Real progress beyond 6200 still required to escape 9-month trend of falling highs and allow the index to distance itself from 200-day moving average.
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Possible support
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Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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DAX having another go at clearing the 10000 hurdle, still in rising channel. Bullish breakout from 3-day narrowing pattern this morning. Helped by a weaker EUR as the USD bounced and EUR/USD FX rate pulls back from trendline of falling 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 flirting with fresh 2016 highs, having regained breakeven last week. Rally still in play after last week’s breakouts at 15400 and 17500 beyond falling resistance and from what was a worrying rising wedge pattern. Potential for revisit of 17900 although we note an overbought daily RSI.
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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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Gold has found support at $1240 after a stronger USD helped it complete a bearish Head & Shoulders from $125. Still in strong uptrend and reversal from multi-year lows, buoyed by increased use of negative interest rates and potential that the US Federal Reserve might be prepared to let inflation overshoot its targets, meaning the safehaven yellow metal might finally have some inflation to hedge. It’s been a while.
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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