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Equity markets are negative this morning, digesting the latest terror attack on French soil (the third in 18 months). It’s perhaps difficult to admit, but markets are tending to shrug these events off more quickly each time they occur. Will we see a similar reaction over the coming trading days? While low cost airlines Ryanair and easyJet are suffering to the tune of up to 4%, likely a short term dip for these stocks, note flag carrier IAG’s shares down less than 1%. Note also shares in tour operator TUI AG finding support a mere 1.3% lower than yesterday’s close. These are small moves given what’s just happened. In terms of weightings, we note defensives (big pharma, consumer discretionary) currently holding things up while the risk plays in the miners and financials are dragging.
The UK 100 has fallen below support 6650 after breaking down out of yesterday’s rising wedge pattern. Dow Jones futures are flat since they closed yesterday evening, and perhaps looking a tad toppy given a very strong run of late. The DAX30 is pausing just above 10000 – more consolidation after yesterday’s breakout lost steam – with falling highs around 10400 still a target for bulls as long as the round number holds. Gold is still under pressure from 10 July falling highs, although overnight lows $1326 are currently holding as support.
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The UK 100 is still in a longer term rising wedge. However, note intersecting support around 6600 could engineer another leg higher. The RSI has turned over, but is in bullish territory and hasn’t gone overbought.
Watch levels: Bullish 6700, Bearish 6590
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 broken out above its 200-day moving average, with bulls looking for a continuation towards 10380.
Watch levels: Bullish 10145, Bearish 9890
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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Wall Street/Dow Jones futures have flattened out around their all-time highs. Note the hourly RSI diverging bearishly and the narrowing rising wedge pattern.
Watch levels: Bullish 18610, Bearish 18320
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 at the apex of a pennant pattern. Bearish continuation or bullish reversal?
Watch levels: Bullish $1335, Bearish $1329
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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