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Equity markets have made it another retreat from recent highs, much to the annoyance of hopeful bulls and vindicating recent bearish calls of ‘overbought’. Hawkish Fed member comments are at the root of the pullback, with a resulting stronger USD hampering the dollar-denominated commodities space. A backtrack in oil prices on swelling US stockpiles is also tempering risk appetite as investors gear up for the long Easter holiday weekend. A 5-week rally for global equities could be in jeopardy. Note DAX easily underperforming, failing to benefit from a normally beneficial EUR weakness for German exporter equities.
The UK 100 has found support at 6120, just above the floor of its March range. The DAX30 is back below 10,000 and in the midst of a bearish pattern towards 9800. Wall Street’s rollover from highs is fast approaching 1-month rising support at 17400. Gold has fallen back from breached $1225 support due to a stronger USD and despite flagging risk appetite.
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The UK 100 decline has found support just above recent channel lows after Miners/Oil suffered from a stronger USD weighing on commodities space and retail sector taking a knock after poor results from Next. A range-traders paradise until a break is forthcoming.
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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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The DAX is back below 10000 and in the midst of a bearish head & shoulders reversal pattern having broken below a 9950 neckline. Potential for pattern to complete at 9800, possibly even all the way back to this week’s lows of 9750.
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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The Dow Jones is still rolling over from recent highs following a near 14% recovery rally from mid-February (RSI suggests it was overbought at the highs). Bulls eyeing rising 1-month support to 17400 to keep the party alive, while Bears watch for any suggestions of a breakdown.
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 already sold back from a revisit of the breached $1225 level, cementing its move from support to resistance. Falling highs since yesterday suggests potential for a retrace to end-Feb levels just above $1200.
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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