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Equities look to have found their footing post-Brexit, despite political turmoil in Westminster and the trio of ratings agencies having sent GBP to fresh 31yr lows after stripping the UK of its gilt-edged creditor reputation. While equity volumes are picking up, they are still below average and so bargain-hunting may be helping as opposed to emergence of genuine support as markets adjust to a new normal and the prospect of the UK outside the EU. The UK’s UK Index is already testing yesterday’s highs with companies that have reassured investors seeing their shares outperform (NXT, LGEN) while the recently volatile financials and property sectors are posting welcome rebounds. The German DAX and Wall street remain in recovery mode from from their post-Brexit lows.
The UK 100 is back from a teasing bounce above 6100, already testing 6050 for support. The DAX30 has bounced from 9300 after a retrace from 9700 recovery highs. Wall Street/Dow Jones futures bounced from fresh post-Brexit lows of 17200 overnight but remain dogged by falling highs at 17300. Gold remains sideways around $1325, held close to post-Brexit highs as safe havens remain bid on Brexit uncertainty.
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The UK 100 has returned to the 6100 level following a strong open in today’s session, and has found resistance at the 200-day moving average.
Watch levels: Bullish 6150, Bearish 6050
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 DAX30 has once again bounced from the 9310 level and and is currently range bound between there and 9500.
Watch levels: Bullish 9650, Bearish 9300
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 again bounced from a new post-Brexit low and are currently up around resistance at the key 200-day moving average.
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 has declined for a second day and is heading towards support at $1305. Could another impending leg lower for equities help engineer a bounce of that level?
Watch levels: Bullish $1322, Bearish $1295
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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