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Equity markets still on the up, digesting the Fed’s January policy update as a positive with the tough start to January and market volatility a potential negative for the US economy, likely keeping the US central bank from hiking rates quickly in 2016. Markets still love cheap money, so lower rates for longer (or indeed more stimulus) remains bullish. And with US data having been a little soggy since December’s landmark hike, and inflation held back by another leg down by oil, market expectations are for just one more rate rise this year and not until well into the second half. So we could be fine for another 6 months at least and with the added potential bonus of more stimulus from the ECB and BoJ. Everything’s rosy, n’est-ce pas?
UK 100 testing 6000, having potentially broken out from complex inverse H&S reversal pattern. DAX continuing with reversal and bounce towards 10200. Wall St in rising reversal channel towards 16400. Gold holding rising support at $1118.
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UK 100 broken above 5950 where it subsequently found support, which bodes well for completion of a bullish complex inverse head & shoulders reversal. Note however, long term falling highs at 6200.
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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 has made further progress from its break beyond falling resistance. The bounce off rising support keeps the reversal from 6-month lows intact. Rising channel?
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 made a third bounce and broken back above 16000 which to give a rising channel towards 16400.
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 has found support at $1117 which maintains the accelerated uptrend from mid-January. A break above $1120 needed to counter falling highs from last night.
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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