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Equity markets are building on yesterday’s gains, inspired by weak US data pushing back expectations of a US rate rise and ECB President Draghi saying QE for as long as necessary, the combination of which calmed battered bond markets and ushered US equities (S&P500) to close at a fresh all-time high. Greek debt negotiations still an overhang, but experience and thicker skin suggests optimism of an eventual agreement. UK 100 back testing 7000, Germany’s DAX trying to break above April downtrend, Wall St gunning for all-time highs and Gold holding recent breakout near 3-month highs.
UK 100 made it back to test 7000 which bodes well for a return to recent highs. Holding above the 100-day moving average also keeps the uptrend from mid-December alive. Falling highs from April still a concern.
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Possible support
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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 is making an attempt to break out above the falling highs from mid-April to allow for a return rally to all-time highs 12241. Another bounce from near 11200 keeps the uptrend from mid-October in play, but repeated tests of 100-day moving average could begin to weigh. Daily RSI found support before oversold but yet to break above 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.
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The US Dow Jones has made it back to near all-time highs , and thus the top end of its multi-month sideways shift. Can it break higher? Will it correct lower? Rising daily RSI still favourable even if shorter term RSIs still suggest overbought.
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’s breakout above $1215 benefited from weaker US data and thus a weaker USD (rate rise expectations pushed back) as well as ECB Presdient Draghi’s ‘QE for as long as necessary’ speech revising hopes of inflation returning. Yesterday’s high represented only an incremental improvement on the prior. Now above the 100 and 200-day moving averages, watch for these reverting to support on any weakness.
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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