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Risk appetite has returned to equity markets to bring indices back off their hawkish Fed-minutes-inspired lows. An easing in dollar strength helping commodity prices hold up and oil pointing back towards $50 is helping reinstill confidence in the last trading session of what has been an eventful week.
Financials remain hopeful of a higher US interest rate environment come June as G7 finance ministers and central bankers meet in Japan to discuss global growth. Note potential for disagreement on fiscal policy and currencies – and a hitherto attempt at coordinated action – to make way for an ‘every man for himself’ approach on addressing what is disturbingly anaemic inflation and annoyingly subdued growth after years of largely ineffective action.
The UK 100 has made a bullish breakout from a reversal pattern that could complete as highs as 6185, maybe even continuing to the 6220 May channel high. The DAX30 rebound has been capped by a 1-month trendline of falling highs at 9900. Wall Street/Dow Jones futures have bounced sharply from 17340 2-month lows, but already found a hurdle in 17500. Gold has found support at $1245 to resume its 3-month uptrend as yesterday’s Fed-inspired dollar hindrance eases.
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A UK 100 has reversed its downtrend and broken out from a bullish inverse head & shoudlers reversal pattern that could complete at 6185, maybe even continuing towards the channel high 6220.
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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 remains hindered by a 1-month trendline of falling highs at 9900. which has served to cap the index’s overnight reversal. Into another apex?
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 has rebounded sharply from 17340 2-month lows, but already found a hurdle in 17500. Still in down channel, but potential for a 17500 breakout to start a similar bullish H&S pattern to that in progress on the UK 100 , taking us back to towards 17700.
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 has found support at $1245 to resume its 3-month uptrend as yesterday’s dollar hindrance eases. Upside potential of $20 before we encounter May falling highs resistance.
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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