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Equity markets in positive territory, albeit with limited gains, as poor Chinese inflation data added to a weekend trade data disappointment and bolstered suggestions that more stimulus is warranted. With markets still big fans of cheap money and extraordinary policy, this offsets some of the more recent uncertainty related to global growth, equities being overvalued and fears of an imminent US rate hike. We note, however, markets still don’t yet consider a Fed rate rise to be a done deal.
UK 100 bounced off 6280 overnight but remains in downtrend from last Wednesday. DAX testing floor of shallow rising channel at 10080. Wall St back above 17700 but continues to turn down from 18000. Gold sideways around $1090 after falling to 3-month lows.
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UK 100 continues to fall back towards key 6250 support. This prolongs the pause after the early October breakout. Will we get a bounce or will we break lower? Any help from 50-day MA?
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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Germany’s DAX broken below trendline of 6-week rising support, but continuing to hold shallow 2-week rising channel. Pause before another rally or a precursor to a breakdown?
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 futures continuing to turn over from heavily overbought position (ditto for all US bourses) with RSI also breaking below rising support. Watch for index support at 200-day MA at 17593.
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 back up off $1085 support with RSI recovering from oversold territory. Technically, potential for recovery, but US rate rise and stronger USD remain indisputable headwinds and a break above $1100 would provide better confirmation.
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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