This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equities are benefiting from a return of risk appetite following a 2 week sell-off, one that that gained fresh momentum recently amid, 1) fears about Chinese growth, 2) oil oversupply, 3) US tax reform, 4) mixed corporate results, and, 5) over-valuation after markets made more fresh record highs. Already off our best levels though, how long will it last?
The UK Index is flat, buoyed by gains for SHP (drug approval), BARC (technical bounce, German M&A talk), BATS (heavyweight), PRU (results) and GSK (drug approval) offsetting the drag from RDSB (ex-div), GKN (higher costs, CEO leaving), BT (still under long-term pressure), BLT/RIO (bounce lost momentum), and EXPN (still digesting results). Germany’s DAX outperforms on a EUR pullback (USD bounce) helping TKA, INF, HEI while VW benefits from a Chinese electric tie-up and DBK and CBK rise on M&A hopes.
The UK Index 100 bounce has already been checked by falling highs resistance at 7400. The DAX 30 bounce has been checked at 13050. Dow Jones Futures have seen their bounce slow up at 23350. Gold trades in the middle of its current $1270-1290 range.
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The UK Index 100 bounce has already been checked by falling highs resistance at 7400. Another bearish flag 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.
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The DAX 30 bounce has been checked at 13050. Back to recent lows?
Watch levels: Bullish 13,075, Bearish 13,000
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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Dow Jones Futures have seen their bounce slow up at 23350.
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 trades in the middle of its current $1270-1290 range.
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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