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Equity markets are negative this morning with an impending OPEC meeting on Sunday keeping the bulls at bay – advance upside seemingly now done and dusted. We’ve had some good Chinese manufacturing data and a dull GDP number that fell in line with estimates. Markets haven’t really cottoned on to either. March’s 36% rise in Chinese copper imports, reported earlier in the week, likely brought what should’ve been Friday’s market reaction forward a couple of days. Nothing really left to boost risk sentiment today and so we expect a flat end to the week with perhaps a little risk off move to take UK 100 lower.
Wall St futures continue to flit with 17920 Oct / Nov 2015 levels following a week of rate hike negative data, yet still buoyed by risk appetite on the back of encouraging corporate earnings from a couple of big banks. The DAX is also taking a break in its uptrend as the Euro stabilises.
Technically, the UK 100 has broken down out of a bearish rising wedge pattern, DAX30 is retreating from 10110, Wall Street/Dow futures are showing some market indecision around aforementioned levels and Gold is creeping back up from overnight lows of $1225ish.
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The UK 100 is paring declines out of this morning’s bearish rising wedge. Support found at 6434 thus far, while further downside to 6325 shouldn’t alarm bulls as long as that level holds. A break below could herald a further 60pts down. Look out for the RSI dipping back from 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 is also turning back from 10,100 with its RSI having broken a rising trend line and come back from overbought. The index has found support 10018 for now.
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 is still battling those Oct/Nov resistance levels and has found support this morning at 17900. Note momentum in sharp decline and the RSI back from overbought. Potential for 17845 by end of play, given the US starts trading at 2.30pm.
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 is consolidating amid the week-long downtrend. We see not too much in the way of further downside today given the risk off / risk neutral sentiment currently pervading equity markets.
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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