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Mid-way through the European session, equity markets are holding firm with the UK’s UK 100 benefiting from a good set of Chinese trade data – that helping the miners and other EM-focused stocks. Does this mean better times ahead? We must be careful when answering such a question, but with Chinese copper imports having surged by 36% in March, the near-term outlook seems trade positive. While one should keep an eye on the USD, which has been essentially in a downtrend YTD making commodities a better buy, a new sense of unity within the Fed has seen the US central bank and markets come to agreement with one another concerning the number of rate hikes expected this year: 2 at most. The question is: has China’s economy merely benefited from short term USD weakness, or is it home-grown?
Technically, the UK 100 has maintained its breakout from March’s sideways range, DAX30 is taking a break around 9980 after some profit taking at 10000, Wall Street/Dow futures are back testing Oct 2015 resistance and Gold is testing $1240on its return from yesterday’s highs around $1263.
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The UK 100 is maintaining gains above 6300, yet has stalled in its northerly progress as long traders take a quick profit. Buyers’ remorse could see a dip back below 6300, but more buyers likely to enter there. Note the daily RSI is not yet overbought.
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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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The DAX has made a strong break above 9900, also suffering some profit taking currently. Onwards and upwards towards 10,100 in coming days? Daily RSI is not yet overbought
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 met resistance again at oct/nov levels, having come back from there overnight. Higher lows since Tuesday put a breakout on the cards, with the daily RSI pointing back up in bullish territory.
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 sold off, as safe havens do when risk sentiment improves. It’s also stalled at support around $1241. If risk-on remains the theme, a break below and continued pullback could be on the cards with the daily RSI itself heading lower.
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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