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Equities are in the red this morning with UK and European markets suffering from a lack of drivers – they look just as addicted to dramatic announcements as they are to economic stimulus! A lack of juicy data is leaving FX as the major driver with a weaker USD and stronger GBP causing the big multinationals to take the most points off the UK 100 , while oil price weakness is hurting energy stocks ahead of this afternoon’s US DOE oil inventories. Financials and a different mix of defensives are outperforming – just.
A break above 6875 is now needed to put the UK 100 on track for 6900 and 7000. The DAX 30 is looking toppy in the short term with a resurgent Euro putting pressure on German exporters’ shares. Dow Jones futures have bounced off rising supportand are testing their 50-hour moving average. Gold is struggling now with resistance around $1353, despite US Dollar weakness, indicating that risk-on sentiment could be prevailing and thus better times for equity markets.
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The UK 100 is indecisive at current levels, just below yesterday’s fresh 12-month high. While bulls will see support at the 20-day MA allowing for a bit of downside before the uptrend is threatened, we are wanting for upside drivers right now.
Watch levels: Bullish 6915, Bearish 6730
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 is mid-way between the floor and ceiling of a potential new range. Note the RSI has turned back from overbought.
Watch levels: Bullish 10750 Bearish 10580
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
Dow Jones futures have bounced off rising support, however the 20-period moving average is currently a hurdle to northerly progress.
Watch levels: Bullish 18550, Bearish 18465
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 is trying to break back into the upper part of its wide falling channel. a breakout above $1355 still needed to put the ceiling in view at $1362.
Watch levels: Bullish $1360, Bearish $1350
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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