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One thing we can say for certain is that volatility in these markets is in abundance. Once again the markets are mixed at the start of play after another hugely volatile day of trading yesterday with the markets flip flopping between positive and negative. European markets recovered sharply towards the end of the session after some decent earnings figures from the States. However, the US markets lost their momentum towards the close as traders evaluated the risks of holding positions overnight leading the Dow to finish relatively flat.
The UK’s UK 100 looks as though it could be at the early stages of a new trading range as resistance was once again met at 6400. With support likely at 6317 and 6242 we should watch closely to see if a trading range will develop. However, a break above 6400 could signal a push upwards of 6500 while a break below 6240 could see the UK 100 pull back towards 6000.
Recently broken support on Germany’s DAX will likely act as resistance now around 8898 whilst support may still hold at 8676. Should we get a break above 8898 then little should be in the way of a run back towards 9200. The DAX is trading below its major moving averages suggesting we could see more hurdles to the upside than the downside. The RSI is still out of oversold territory although it has begun to flatten.
The US Dow Jones struggled to break resistance at its 50 day moving average yesterday whilst 16300 held firm as a level of support. US earnings could once again be the driving factor for the US markets today with more big names due to release numbers. Resistance may again be met at the 50 day moving average and we’ll look for 16300 to hold again as support.
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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
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
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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