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Markets are extending losses again this morning as concerns over global growth continues to weigh on sentiment. Mario Draghi added to the FOMC’s growth concerns by commenting that there are signs the euro-area’s economic growth is slowing. Volatility is certainly back with the Chicago Board Options Exchange Volatility Index (VIX) surging 28 percent to its highest level since February.
The UK’s UK 100 broke below the two key prior support levels that have been highlighted over the last week. These levels may now turn resistance after the UK 100 traded at one year lows overnight on global growth concerns. Should the UK Index managed to break back above resistance at 6395 then it may head back towards 6500. However, if support at year lows is broken there appears to be little in the way of support to stop the UK Index heading back to 6000.
Germany’s DAX has a case of ‘the same story, different day‘ as the one month downtrend continues. Support was found overnight at August lows around 8900 before a 50 point retrace. However, should this support level be broken there is very little support until around 8470, 8215 and 8085. The 100 day moving average has broken below the 200 day moving average, whilst the RSI is still oversold.
The US Dow Jones may find that prior support, that was broken again overnight, may now provide resistance. The Dow futures are pointing to a slightly higher open although with European borses in the red this morning that may change. Should yesterday’s support turned resistance level be broken then further resistance may come around the 50, 100 and 200 day moving averages. Support to the downside is somewhat scarce. The RSI, however, is continuing to climb after breaking out of oversold territory.
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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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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
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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