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Equities are mixed this morning with the UK’s UK 100 down by about 30 points due to an unusually large set of stocks going ex-dividend – some big dividends at that. European markets are largely positive, as are US futures. Sentiment may have been dented by BoE QE teething problems over the last couple of days with that ever present worry that central banks are not only running out of options, but are also pushing their luck with certain areas of the market – like pension funds.
This is important. While people can easily be confused by jargon and the technicalities of QE (‘I don’t know what this all means, but I’m not an economist and so must trust that the Bank of England is trying to do the right thing’), they understand very well what pensions are, have likely been paying into one for some years and will not be endowed with confidence by watching pension deficits widen due to zero yielding bonds.
The UK 100 is on the back foot although support is holding at rising lows from last week. The DAX 30 is consolidating after a strong Wednesday – some profit taking likely – ahead of another potential leg up towards 10880. Dow Jones futures have sold back from resistance at the ceiling of a 2 day falling channel. Gold is trading around and about its major hourly moving averages.
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The UK 100 is trading in between rising support at 6814 and its 50-hour moving average at 6832. Note falling highs on the RSI.
Watch levels: Bullish 6845, Bearish 6810
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 pretty much where it was this time yesterday. Note potential support at the 20-hour moving average could provide the impetus needed for a re-visit of the ceiling of a 2 day sideways range.
Watch levels: Bullish 10750 Bearish 10625
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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Dow Jones futures have bounced off rising support, however the 20-period moving average is currently a hurdle to northerly progress.
Watch levels: Bullish 18570, Bearish 18485
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 has remained in a longer term narrowing pattern and is currently somewhat tied up in a muddle of moving averages.
Watch levels: Bullish $1348, Bearish $1339
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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