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Equity markets are approaching major support this morning as the fallout from last night’s Fed minutes saw markets price in an increased likelihood that June sees Yellen & Co. hike rates again in June. The resulting stronger USD is hurting the important UK Index commodities space, notably oil, which is weighing heavily on the index, while defensive high yielding stocks look less attractive for income seekers should rates rise again. Banks may be topping the leader board, loving the prospect of higher rates, but this are failing to outweigh the negativity on oil, metals and those exposed stocks.
A UK 100 breakdown at 6095 sees it pointing towards a retest of 2-month support at 6060. The DAX30 is close to revisiting last week’s 9760 lows and the base of May’s sideways channel. Wall Street/Dow Jones futures are edging closer to the floor of its 1-month falling channel and 2-month lows at 17400. The stronger USD may have seen Gold breached 2016 rising support at $1260 but shallower 3-month support lurks around $1250.
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A UK 100 breakdown at 6095 this morning sees the index pointing towards a retest of 2-month support at 6060. From there a breakdown could open the door to a triple top pattern down to 5900. A bounce, however, would keep us in that 6060-6200 range with potential for a return to the channel ceiling.
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 is close to revisiting last week’s 9760 lows and the base of May’s sideways channel. A bounce could lead to a triple bottom; a breakdown could lead to a triple top. Much like the UK Index , bounce or break?
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
Dow Jones futures have broken back below 17500 and look to be edging closer to the floor of its 1-month falling channel and 2-month lows 17400. Will we get a bounce towards the channel ceiling, or fall through the floor?
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
The stronger USD may have seen Gold breach rising support at $1260, to jeapordise the 2016 uptrend, but shallower 3-month support lurks around $1250 to keep the uptrend alive.
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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