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Equity markets nursing losses this morning, backtracking from valiant attempts to deliver breakouts. The driver? I’m afraid it’s oil again, and markets are also coming round to the fact that there is a distinct absence of good news doing the rounds to keep the major indices up around recent highs. OPEC’s mouthpiece Saudi Arabia has said no to global production cuts on account of a lack of trust. A freeze is about as likely given Iranian and Iraqi reluctance. Oh and the cartel’s Secretary General has as good as admitted that US Shale has become the de-facto swing producer, which will only serve to hinder any oil price rally. And that’s before we add political (UK Brexit, US Trump) to the equation.
UK Index broken back below 5900, extending its retrace from recovery highs. DAX broken below 9300 to continue its fall-back from rebound highs. Wall Street back from its highs, but yet to test 16275 support. Gold testing trendline across recent highs at $1230 as global risk appetite wanes to the benefit of safehavens.
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UK 100 broken below 5900 to extend its retrace and open up the possibility that we fall all the way back to recent lows 5500 and maybe even lower to the floor of the 3-month down channel.
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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 breached support at 9300 to extend its retrace from rebound highs of 9600. However, as it had broken out from its 2016 downtrend, it could find support at 9150 thanks to the old trendline. Otherwise, like the UK Index , we could be headed back to the lows with good news in short supply.
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 still falling back from recent highs, but yet to retest 16260 support. If this level holds, potential for a bounce to make another rising high. around 16275.
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 is back at the $1231 ceiling of its 2-week narrowing continuation pattern as global risk appetite flags. Could a breakout be on the cards as equities fall and safehavens see a revival of interest?
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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