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Equity markets are in the red this morning, though managing to hold up around yesterday’s support levels amid hawkish tones from some albeit non-voting US Fed members. This has served to irritate market nerves and strengthen the USD, with that heaping some pressure onto the Dow Jones and other Dollar-sensitive indices – notably the UK 100 . The UK benchmark is also subject to technical range trading and appears to be consolidating in the middle of its 6060-6220 sideways channel. US rate hike speculation is buoying the German DAX via a weaker Euro even though the index currently sits just shy of yesterday’s close.
In summary, the UK 100 ‘s rising support line from Friday’s 6060 low is still holding, though subject to frequent tests; the DAX30 has made an encouraging bounce confirming a trend of rising lows since 6 May; Wall Street/Dow Jones futures are consolidatingaround the neckline of a potential 2.5mth bearish H&S reversal. Gold is still testing its own trend of rising lows on a stronger USD.
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The UK 100 h found support yesterday, mi-way between the floor and ceiling of its 6060-6220 range. A bounce of 6130 and break back above the 3-day rising trend line is encouraging for bulls while bears will look to a triple top as a harbinger of a retreat back south.
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 has made an encouraging bounce off rising support. A breakout above 9670 puts the area of resistance around 10100 in the sights of bulls, who will be eyeing what might now be a bullish triple bottom forming!
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 are undecided on direction today, with support at the neckline of a 6-week bearish head & shoulders top formation – a break below which could see the index retreat further towards the 200-day MA 17200.
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 has bounced off $1270 support and has spotential to settle into a sideways channel from here on, with little impetus for the yellow metal to head back up as far as May highs $1300. A setup for range traders.
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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