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Equity markets are selling off this morning with both UK 100 and Germany’s DAX making their way back into 1-month downtrends in a retreat from the April all-time highs achieved by both indices. UK election celebrations appear well and truly over as equity markets remember that economic recovery is still very much a work in progress. Greece continues to wow for all the wrong reasons as it emerges that it has started tapping IMF money to repay the IMF of late, the news accompanying speculation that the indebted nation has just weeks before it goes bust. Wall St. also down but insulated somewhat from Europe while Gold continues to struggle to break decisively above $1200 despite all this uncertainty and a weakening US Dollar.
UK 100 has fallen back below the key 7000 level after a failed election-fueled foray back towards all-time highs. The index is back in its April downtrend, weighed on by the likes of HSBC, SABMiller, British American Tobacco and easyJet. Is this just consolidation before another push higher?
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 remains in its April downtrend having not had a general election of its own to excite market there – rather a focus on Greece to depress them. A drop below 11400 could see further downside towards the 11200 level. Note the daily uptrend from mid-Oct is still holding but the daily RSI has falling highs.
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
The US Dow Jones is continuing to fall back from May highs around 18200 on elements of profit taking and Greek debt worries affecting European investor sentiment. A revived bond market rout has thus far failed to boost US equities.
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 still trading sideways below $1200 with support now around $1180 as the usual drivers appear to be struggling to have the desired effect – Eurozone uncertainty, weakening US Dollar, Russian muscle-flexing et al. Note also potential resistance in the form of a falling trend line linking falling highs from 5 May.
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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