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Equities very much on the front foot this morning thanks to news that we finally have a deal from Brussels after a marathon 17hr weekend summit between Greece and its Creditors on a third bailout to avoid a Grexit and keep the 14yr irreversible single currency alive. However Greece is having to pay for trust lost amid protracted negotiations and the initial relief rally has already been checked by need for concrete agreement/approval on finer details. Another agreement to make an agreement. Oh joy.
Final details still to be released but markets reacting positively, even if Greece appears to be giving up significant sovereignty, there is no debt relief involved (reprofiling/extensions rather than any write-off of €300bn owed) and so we are likely just kicking the proverbial can a few years further down the road. Parliamentary approval still required in Athens and across the Eurozone. Final negotiations and mandate by end of week. It ain’t over till it’s over. Prepare for more ups and downs.
UK Index testing falling highs from end-May at 6730. DAX testing ceiling of falling 3-month channel at 11450. Wall St testing July highs 17800, trying to close gap to 17900. Gold still held back by falling highs from mid-June at $1165.
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UK 100 ‘s bounce off 9-month rising lows extended to 365pts, and we are currently testing 6730 falling highs from end-May. Gap of two weeks ago now closed, but true breakout above 6730 yet to materialise. Bulls still hopeful of seeing 7000 but Bears typically skeptical and eyeing consolidation/retracement.
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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 bounce extended to allow for a test of the 11450 ceiling of the 3-month falling channel and closed the 11400 gap of two Monday’s ago. Next hurdle is 11600 highs of late June.
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 now comfortably above 17770 falling highs from end-June, however, still needs to overcome intersecting trendline from mid-March at 17850 which is serving as resistance. Gap of two Monday’s ago still to be closed at 17900.
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 still suffering fro safehaven dis-interest, plagued by falling highs dating back to mid/end-June. Potential for another visit to 3.5 month lows $1147. Risk appetite and USD strength continue to trump demand for the safehaven.
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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