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Equities are in the red across the board this morning as profit taking dominates ahead of tomorrow’s Bank of England policy update. With a glut of ‘ideas people’ talking about a) what they would like to see and b) what they think we will see, investors are understandably jittery. This also follows what many have labelled a ‘disappointing’ package from the Bank of Japan yesterday and a more general trend of inaction and unwillingness of central banks to show their hands over the past few weeks. A rate cut in Australia on Monday failed to boost equities there which is likely dampening sentiment too and sending investors running into good old bonds, with Gold relatively unattractive given what could be a volatile Thursday on the currency markets.
The UK 100 has dropped back into its August falling channel after staging a brave breakout attempt early on in the session. The DAX 30 has bounced from 10100 having completed yesterday’s bearish head & shoulders top. Dow Jones futures look weak after breaking down through major support and are currently unable to re-take their 20-hour moving average. Gold is in an August bearish rising wedge pattern.
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The UK 100 is in a falling channel with bears targeting 6600 after the index made a failed breakout that was killed by the 50-hour moving average.
Watch levels: Bullish 6680, Bearish 6625
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 undergoing profit taking after completion of the August bearish Head & Shoulders top around 10100. 20-hour moving average is currently a hurdle, while 50- and 200-hour moving averages have made a bearish cross.
Watch levels: Bullish 10195, Bearish 10080
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 broken decisively below two major support lines in an intensification of the July correction.
Watch levels: Bullish 18335, Bearish 18230
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 is in a bearish rising wedge pattern. Note the RSI has failed to match Gold’s higher highs with its own since 28 Jul. Any breakdown likely to be cushioned at the 100-hour moving average.
Watch levels: Bullish $1370, Bearish $1360
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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