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Equities are mixed this morning as the UK Index and Dax pare their early morning gains. Oil prices are coming back from their weekend highs too, as concerns about global growth kick back in following Friday’s disappointing US GDP estimate (just and estimate though…). UK Pharma giant Shire is the UK Index heavyweight this morning, flexing its muscle and urging ADS holders to reject an unsolicited offer representing a 4% discount to the current share price. It’s joined by oil and mining stocks that are outperforming on weaker USD, although oil price weakness could see BP loosen its grip on the index in due course.
Holding things back are Royal Dutch Shell and British American Tobacco, both seeing their FX translation benefits wane as GBP/USD settles into an uptrend, while Royal Bank of Scotland and Barclays are also dragging ahead of Thursday’a key Bank of England policy update and what that may mean for both the US and Japan in terms of stimulus.
The UK 100 itself is struggling to remain positive around 6738 with 6800 the level to better before we can eye fresh 12-month highs. The DAX 30 is at the ceiling of a falling channel from its Apr 2015 highs. Dow Jones futures are in a shorter term correction – mid-bullish flag? Gold relatively quiet and could well remain so in the run-up to the BoE’s Super Thrusday.
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The UK 100 is managing to remain up near its 12-month high point. Daily RSI is still bullish and not overbought although the more time we spend here without a decent push higher, the more upwards momentum will be lost. Support possible at the 20-day moving average.
Watch levels: Bullish 6770, Bearish 6690
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 DAX 30 has met resistance at 10486. The last 2 times time it hit this level from below, a large sell-off ensued, putting a retreat to 9770 on the cards this time. Keep an eye out for today’s candle to form a bearish inverted hammer. Note also the July bearish rising wedge on the hourly chart.
Watch levels: Bullish 10500, Bearish 10350
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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Wall Street/Dow Jones futures still correcting and trying for a breakout to the upside, though the index has given up early morning gains.
Watch levels: Bullish 18550, Bearish 18430
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 thus far undecided on direction, although rising support since end-May is reassuring.
Watch levels: Bullish $1356, Bearish $1345
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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