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Markets have started tentatively higher this morning as they digest the possibility of a contagion effect following Japan falling into recession and talk of an early election – bringing it forward by some 2 years. Mario Draghi indicated on Monday afternoon that the ECB was willing to do more to stimulate the economy – including buying government bonds. These comment created a positive move across the European bourses, moving them from negative to positive territory. A report from analysts at HSBC, the country’s biggest bank, this morning states that they believe interest rates will stay at current levels until at least 2016, which could be helping the markets higher this morning.
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The UK’s UK 100 is continuing on its path to recovery this morning with the 4 week uptrend still holding firm. The key level for now will be 6700, which is also the 200 day moving average level, which could provide resistance. A break above this level could see the UK 100 pushing back towards 6800.
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 has broken above prior resistance this morning with 9500 being the next target level after a bullish flag pole formation was made. This morning has seen the 20 day moving average break above the 200 day moving average whilst the 50 day moving average has also broken above the 100 day moving average. The RSI is in overbought territory and still 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.
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US Dow Jones is trading towards the top of its 1 week trading range with 17540 providing support and 17690 providing resistance. The 20 day moving average has crossed above the 50 and 100 day moving averages with the 100 day moving average also a level that could hold as support. The RSI has turned lower and is starting to decline.
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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