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Equity markets are lacking the bullish conviction that dominated late last week, back from their highs, disappointed at the absence of concrete proposals from the weekend’s G20 meeting of finance ministers in Shanghai. Equities have understandably spiked higher on news that China has cut its bank Reserve Ratio Requirement (RRR), following further depreciation in the renminbi currency overnight which shows its intention to do more, however, the gains may have already run their course with a remarkably muted reaction compared to what we have come to expect from stimulus announcements. Does this signal waning faith in central bank fire power? Or bigger fears over China? Commodities off their best levels is perhaps also weighing, demonstrating that oil remains an important driver, along with early discussions about a potentially very ugly Q1 earnings season (corporates already guiding much lower) serving to sap sentiment.
UK Index still in Feb uptrend, but Friday 6115 highs failed to meet end-Jan’s best levels. DAX still sideways 9100-9600, having failed to make fresh Feb highs. Wall Street back from 16800 rising channel highs. Gold bounced off $1210 rising support in-line with the latest equity sell-off and red start to the week.
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UK 100 attempted to revisit Jan highs, but failed. Resistance coincides with 9-month falling resistance which represents a major hurdle
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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 still sideways, having retraced from the channel highs after failing to make a fresh Feb high.
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 in the middle of its 6-week 16200-16800 rising channel. Note support all morning at 16500.
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 bounced of double rising support at $1210 which coincides with the drop in equities from their highs and reduction in risk appetite which tends to benefit safehavens. Breakout at $1230?
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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