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Equity markets are negative this morning but well off their worst levels and close to closing the gaps down that we started the week with. While the oil price may be sharply lower (again), it has pared its knee-jerk losses and traders appear to be coming round to the understanding that although no deal came out of the weekend’s Doha oil production freeze meeting, we shouldn’t really have expected anything given the strong stances by Iran (‘not while we ramp up post sanctions’) and Saudi Arabia (not without Iran). Investors are also reviving some of last week’s risk appetite that came about from solid China data, US banks Q1 results not being as bad as expected and some soft US data bolstering the US Fed’s ‘gently does it’ message on policy normalisation.
UK 100 back above 6300, potentially looking to close the gap down from 6330. DAX30 bounced off 9900 to regain 10000 and close the gap-down from 10050. Wall Street/Dow futures made an earlier bounce than expected at 17775 to regain 17850. Gold holding its lukewarm bounce off April rising lows at $1225.
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UK 100 off its worst levels and looking like it wants to close the gap down from 6330. Last week’s breakout from both the 6-week sideways shift and beyond 9-month falling highs keep the Feb uptrend alive. Note rising support around 6250 should we see another pullback.
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 looks very much like the UK Index with its trend of rising lows and attempt to close the gap down from Friday. The bounce off 9900 offers potential for recent highs 10100 to 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.
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The Dow Jones has bounced earlier than expected, before retreating all the way to its trendline of rising support at 17650. Still in major uptrend (best performing major index in 2016) and looking like it wants to make a retest of 17965 November highs.
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 is persisting in its tepid bounce off April rising support at $1225. Gains muted by equities paring early losses and risk appetite returning. The long term bounce and recovery to above $1200 holds.
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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