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European bourses are on the back foot this morning with yesterday’s Fed-sponsored rally looking like it has already run its course. This will concern those bulls who have been patiently awaiting a UK Index and/or DAX breakout above recent highs, however, there is likely an element of month- and quarter-end profit-taking in progress after the strong bounces from 2016 lows. And don’t forget markets often pause for thought before the US jobs report. The Miners are giving up some of yesterday’s healthy gains after the US dollar found support at mid-month lows while a weaker oil price has sapped sentiment a little to drag metals prices even lower from their rebound highs.
UK 100 back in middle of March’s 6100-6200 sideways channel. DAX30 also at mid-point of 9800-10100 sideways shift. Wall Street found support at 17650 breakout level. Gold bounced off $1225 breakout level but faces falling highs resistance at $1240.
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UK 100 again fallen back from 6220 which reinforces the sideways channel. This gives hope to the bulls that we remain in consolidation mode before another up-leg, even if it bears will be warmed by repeated failure to breakout.
Solid Green line
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 back to middle of 1-week range, itself towards the upper end of the index’s 9350-10100 March trading range. Bull still hopeful of a breakout while bears need to see multiple support level;s give way before any major retrace.
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 has fallen back but found support at the recent 17650 breakout. Even if this breaks, the March trend of rising support remains intact so long as 17550-17600 holds.
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 bounced off $1225 as risk appetite wanes and prior resistance turns support. Potential for rebound, but falling highs resistance looms large just $5 higher.
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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