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European markets are slightly higher this morning after yesterdays big sell-off lead by energy stocks, banks and food retailers. The positive open this morning stems from a strong recovery by US equities from day-lows thanks to solid US data coupled with overnight Chinese Inflation data increasing deflationary fears and adding to global growth worries but reviving hopes of more stimulus being forthcoming from the government/PBOC to help kick-start inflation/GDP, offsetting yesterday’s fears of tighter Chinese lending rules crimping growth. Gold is trading at month highs on increased safe haven demand amid the equity sell-off, and helped by a weaker USD this week.
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The UK’s UK 100 broke below a couple of prior support levels yesterday which could now turn to levels of resistance. The first of those levels being 6560 with a break above giving the UK 100 potential to move back towards the 50 day moving average around 6613. The RSI has broken out of oversold territory.
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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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Germany’s DAX found support around a prior support level of 9835 yesterday and is now attempting to head back towards its 50 day moving average at 9936 where it could meet some resistance. The 50 day moving average has broken below both the 100 and 200 day moving averages whilst the RSI is beginning to rise.
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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US Dow Jones has found some support at bottom of a prior trading channel after it recovered some of the losses it saw in the early part of trading yesterday. Support at 17780 looks likely to hold with resistance possible at the 50 day moving average at 17824 and at the 200 day moving average at 17852. The 50 day moving average has broken below both the 100 and 200 day moving averages whilst the RSI is climbing.
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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Spot Gold is continuing its recovery from the lows of last month trading at 6 week highs as investors seek less risky assets with equities falling and a fall in the price of the Dollar boosting demand for Gold. Support should now come at the 50 day moving average around 1212 and at 1206. The RSI has now broken out of overbought territory.
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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