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Equities are in the red this morning as a lack of both momentum and volume take global indices lower on technical grounds, while further declines in the oil price and hesitation regarding the coming central bank updates this week are putting the fundamental brakes on upwards progress. Today (at some point) we’re due an update from the Bank of Japan as to what exactly it will give the markets in terms of economic stimulus.
Defensives are currently holding things up on the UK 100 while risk plays in the miners and banks are dragging. Note however Direct Line Insurance bedding in with the former after it payed off potentially disappointed investors with a special dividend!
The UK 100 itself has made a strong break below support at 6665 and is approaching 6635. The DAX 30 has fallen victim to a bearish head & shoulders top formation which could see 10,100 visited. Dow Jones futures continue to turn over with 18362 currently being tested. Gold has broken up through $1355 and is testing $1360.
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The UK 100 has picked up support at 6630 after a decisive break below its 20-day moving average. The 4-hourly RSI is now touching oversold conditions.
Watch levels: Bullish 6676, Bearish 6615
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 is moving down towards the 10100 target level as provided by the 4-day bearish head & shoulders top formation. Note the hourly RSI is now oversold though, which could tempt profit takers.
Watch levels: Bullish 10205, Bearish 10165
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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Wall Street/Dow Jones futures are punching through support at 18380 after failing to make it back up to resistance at 20 Jul falling highs. Momentum has gone negative while the RSI continues to fall into bearish territory.
Watch levels: Bullish 18450, Bearish 18330
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 maintains support from end-May rising lows while an acceleration of the uptrend since end-July has formed a new rising channel to take the yellow metal back to $1360.
Watch levels: Bullish $1362, Bearish $1351
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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