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Global markets have opened considerably higher again this morning courtesy of a very strong finish for US and European stocks as the Fed’s latest ‘patience’ statement was digested well, boosting hopes of low rates for longer. Assessment of global economic health improved despite Oil falling back to recent lows and some mixed US data. The Dow Jones delivered its biggest one day gain in 3 years while the S&P500 made it the biggest 2-day gain in 12 years. Gold still struggling around the $1200 level even if we did see some volatility and a visit of $1210 yesterday, hindered by the Fed statement confirming small steps towards rising rates which has kept the USD strong and made the metal more expensive to buy.
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The UK’s UK 100 broke above 6500 overnight after as strong session from the States. 6500 could now act as resistance for the UK 100 with an upside target of 6600. The 50 day moving average has broken above the 200 day moving average whilst the RSI is falling after a break from overbought.
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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 briefly broke above 9900 this morning before a slight pull back below. A sustained break of 9900 could see the DAX attack the 10000 level with new all time highs within touching distance. Support should come into play at 9856 with resistance possible at 9900. The 50 day moving average has broken above the 200 day moving average whilst the RSI has just broken out of overbought 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 touched 17900 briefly after registering its biggest one day gain in 3 years. All time highs are well within touching distance now with 18000 a very realistic target. Support should come around 17810 and 17749. The 50 day moving average has crossed above the 100 day moving average whilst the RSI is still 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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Spot Gold is still struggling to break above 1200 after briefly trading up to 1211 yesterday finding resistance at the 200 day moving average. Gold is now trading below all its major moving averages, although support could once again hold at 1191.
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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