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Markets are higher this morning after Friday’s spectacular capitulation saw UK equities close some 161pts lower capping the worst week in three years. A combination of weaker Chinese data, falling oil prices and a struggling Eurozone encouraged traders to continue selling. Disappointing factory data supported trader’s concerns for the world’s second largest economy whilst oil prices continued to slump, U.S. light crude now trading at $58, below $60 for the first time in five years. Eurozone fears were also reignited on talks of a Greek exit from Europe, prompting the biggest one-day decline on the Athens Stock Exchange since 1987, last week. Gold remained steady trading at the $1220 handle whilst silver dropped slightly.
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The UK’s UK 100 traded down to 6200 overnight, its lowest level in 2 months, as the sell off continued from last week. The UK 100 did, however, find support at 6200 before rebounding some 100 pts, now back towards 6300. Resistance may come into play at the 50 day moving average around 6361. The RSI is rising after a breakout of oversold.
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 traded at 3 week lows this morning before regaining 80 pts to trade back at 9600. A break of potential resistance at 9620 could see the DAX look to attack its 50 day moving average around 9711. The RSI is continuing to rise after a breakout of oversold 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.
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US Dow Jones traded at 6 week lows this morning before rebounding by some 100 pts. Resistance may come into play around the 50 day moving average at 17480 with a break suggesting a possible rise towards 17600. The RSI has bounced from oversold and is now rising.
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
Spot Gold has broken below its 200 day moving average this morning with potential support coming around 1208. The 50 day moving average has broken below the 100 day moving average, whilst the RSI is trading towards oversold.
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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