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Equity indices have found their feet again suggesting recent pessimism linked to Brexit fears, central bank updates and China/global growth uncertainty having run its course, now priced in. And our three index majors have all delivered bounces from round numbers – the UK’s UK Index from 5900, the German DAX from 9500 and the US Dow Jones from 17600. Event risk nonetheless remains significant as we prepare for the US Federal Reserve update on policy and outlook this evening and the Bank of Japan’s own effort in the wee hours. And that’s before we even get to the elephant in the room – the UK referendum on EU membership – with a trio of polls expected this afternoon that could well suggest a Leave vote is on the cards and see market jitters return.
The UK 100 has bounced from 5900 and looks set for a test of the 6000 we broke below yesterday. The DAX30 continues its bounce from 9500 thanks to shallow rising support. Can 9800 be regained? Wall Street/Dow Jones futures have seen their turnaround recovery break back above 17700 and early June lows. Gold has pulled back on improved market appetite for risk but still needs to breach $1280 and $1276 to kill off the uptrend.
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The UK 100 has bounced nicely from 5900 and looks set to challenge the 6000 level we broke below yesterday. Note the RSI having recovered from oversold – the bullish signal we had been waiting for. Is a rebound and recovery on the cards?
Watch levels: Bullish 6005, Bearish 5975
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 continues its bounce from 9500 thanks to shallow rising support. Can 9800 be regained? Note the RSI has made a bullish recovery from oversold, just like the UK Index .
Watch levels: Bullish 9675, Bearish 9635
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 seen their turnaround recovery break back above 17700 and early June lows. A move above 17750 could suggest that the recently breached rising channel could be regained.
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 pulled back on improved market appetite for risk but still needs a breach of $1280 and $1276 to kill off the uptrend. Note the RSI falling back from overbought – a bullish signal for equities, with their own RSIs showing recovery from oversold.
Watch levels: Bullish $1291, 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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