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Equity indices are extending their losses, fearful of a now heightened prospect that the UK votes to leave the European Union, worsening an already fragile global growth situation by delivering an economic and political blow to a struggling Eurozone. This comes after the latest Brexit polls suggested the ‘Leave’ camp gaining yet more ground in the run-up to next Thursday’s hotly-debated referendum. Once added to existing concerns about China slowdown and debt bubble, questions about the US economy following a weak jobs report and with a trio of central bank updates yet to come this week, markets have taken another leg lower. Safe havens like precious metals Gold and Silver and the Japanese Yen remain bid while yields on German Bonds have gone negative for the first time as investors seek safety at whatever the cost – even small losses.
The UK 100 has broken below 6000 and while support has emerged at 5960 it may be short-lived with a revisit of 5900 quite possible. The DAX30 has bounced from 9510 to maintain 3-month shallow rising support at 9500. Wall Street/Dow Jones futures have fallen from their rising channel at 17800 to test early-June lows at 17665. Gold has weakened from its $1287 highs but is holding the recent $1277 breakout level which could be the platform for another up-leg towards $1305.
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The UK 100 has broken below 6000 and while support has emerged at 5960 it may be short-lived with a revisit of 5900 quite possible. Any rebound may find resistance at 6000 – offering Bears another bite – and must surely clear 6050 to tempt Bulls back in.
Watch levels: Bullish 5975, Bearish 5955
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 DAX30 has bounced from 9510 to maintain 3-month shallow rising support at 9500. RSI oversold. Any break of 9500 could open the door to further declines while a bounce would likely find resistance at 9775
Watch levels: Bullish 9640, Bearish 9490
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
Wall Street/Dow Jones futures have fallen from their rising channel at 17800 to test early-June lows at 17665. A break of 17660 could seal falls to 17500.
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 has weakened from its $1287 highs to test its uptrend, but it is managing to hold the recent $1277 breakout level that could be the platform for another up-leg towards $1305. Another bullish flag in the making?
Watch levels: Bullish $1284, Bearish $1275
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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