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Equities are holding on to their strong gains, with bulls clearly in control helping several major equity indices deliver breakouts from sideways channels or downtrends. Optimism stems from a second successive positive US API oil report that has seen the barrel creep ever close to the key $50/barrel. This is on top of an already heavily dented Greek debt crisis can being kicked down the road until Autumn, Brexit fears receding, concerns about a US Summer rate hike having dissipated amid mixed US data coupled with some positive German data this morning helping with Eurozone sentiment. Everything, it would seem, is rosy. Sell in May? We’re only just in the red. And still in recovery mode from multi-month lows.
The UK 100 is digesting yesterday’s sharp gains, but support already formed at 6245 for any extension north. The DAX30 is testing 10200 following its breakout at 10100. Triple bottom like the UK Index ? Wall Street/Dow Jones futures have broken beyond April falling highs at 17750, opening the door for a bullish run back to 2016 highs of 18150. Gold continues to sell-off after breaking below 3-month rising support, hindered by a strong USD and appetite for risk assets over safehavens.
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The UK 100 is taking a well warranted digestive pause following yesterday’s sharp gains, but support already formed at 6245. This could serve as a trampoline for the next bullish upmove of a re-run of the the triple-bottom breakout we saw in April to 6400.
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 still pointing north, testing 10200 following yesterday’s bullish breakout at 10100. Said breakout scuppers the April downtrend and opens up the possibility of a run-up to 2016 highs of 10500.
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 have broken beyond April falling highs at 17750 which opens the door to a rally back to 2016 highs of 18150. Note the break at 17750 coincides with completing an inverse head & shoulders reversal from May lows.
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 continues to break lower after ditching 3-month rising support on a combination of USD strength and lack of interest in safehavens amid a rally in equities.
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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