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Equity indices have regained poise this morning either testing or having overcome their downtrends from end-May highs. Whether this is the beginnings of a recovery or merely a teasing bounce remains to be seen, especially with so much event risk in play over the next two sessions (OPEC, ECB, US Jobs). Rhetoric from the first two could easily swing market sentiment, as could a non-Goldilocks jobs report (too hot or too cool in terms of economic progress, impacting Fed expectations). Brexit nerves still lurking although many are coming round to accepting that polls can swing more wildly as vote day approaches. Can the risk appetite that got us to recent highs return?
The UK 100 has made a bullish break from a 2-day falling channel to re-test 6220 and hint at a reversal. The DAX30 has delivered bullish breakouts at 10200 and 10220 to put an end to its 2-day downtrend. Double bottom to 10280? Wall Street/Dow Jones futures have found support at 17740 and a bullish inverse Head & Shoulders reversal could result if we can get above 17810. Gold’s rebound has lost momentum, encountering resistance at $1220 as risk appetite returns.
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The UK 100 has bounced off 6180 having found support at yesterday’s falling channel ceiling. This has allowed a re-test 6220 and sees Bulls pinning their hopes on a reversal and recovery to 6250. The Bears hope this is merely another bearish flag before a second down leg towards May lows 6050.
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Possible support
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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 delivered bullish breakouts at 10200 and 10220 to put an end to its 2-day downtrend. A double-bottom to 10280 is on the cards so long as 1220 turns supportive. Bulls hopeful that 10370 can 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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Wall Street/Dow Jones futures have found support at 17740. A bullish Inverse Head & Shoulders reversal could be in the making if we can get above 17810, helping us back to recent 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.
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Gold’s rebound has lost momentum, encountering resistance at $1220 as equities finding their footing and risk appetite returns. There’s still a chance that a bullish wedge develops over the next few days.
Watch levels: Bullish $1225, Bearish $1208
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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