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Equity indices are back positive following an Asian rally which countered a negative US close on poor data and a Wal-Mart profits warning. The reason for the overnight shift in more bullish comes after soft US macro data, a muted US Beige book assessment and conflicting Fed chat added to disappointing prints from China this week. This reduces the odds of a 2015 US rate hike and increases potential for more easing from Beijing, even if the PBOC is downplaying the prospect. And we know how markets like cheap money and accommodative policy
UK Index broken out from 4-day falling channel to trade back above 6300. DAX regained 10,000 but resistance still lurks at 10,200. Wall St back above 17,000 after breach last night, but intersecting Oct trend-line could hinder. Gold $1,170 breakout got as high as $1,190 and nod farewell to 8-month downtrend.
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UK 100 broken out from falling channel. Potential for breakout to return to recent highs As suggested yesterday, could have been a bullish flag pause before repeat of prior 600pt rebound.
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Possible support
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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 pullback found support at 9900, and the regain of 10000 means potential for revisit of 10200 although the intersecting trend-line from April remains a hurdle around 10180
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 futures back above 17000 after an overnight breach. Note however potential for intersecting trendline to hinder any return to recent 17170 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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Gold broken above $1170 Aug highs and the 200-day moving average which looks to have put paid to the February downtrend. Major recovery on the card. Weaker USD from continued US rate hike delays to give impetus?
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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