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Equities posting strong gains this morning after US and Asian bourses rallied overnight, digesting the Fed’s latest minutes well. Markets welcoming the increased certainty that a rate hike could be delivered in December (rather than being kept guessing as had been the case) whilst remaining at ease that there is still room for delay and that any further rate rises will be very measured.
Equities getting a helping hand from commodities which is benefiting from the USD coming off its highs, after being such a hindrance of late. The prospect of ECB minutes providing more hints about further stimulus may also be assisting, even if it will just go to highlight global monetary policy divergence in the face of uncertain global growth.
UK Index broken above 6300, potentially on track for 6500. Dax broken above April falling highs at 11000. Wall St above 17700 to test 17800. Gold off its lows and broken back above $1074.
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UK 100 broken above 6300. We could be on second leg of bullish flag pattern, extending current recovery rally towards 6500. Note, however, potential resistance at 6400 derived from falling highs since May.
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 testing 200-day MA as it continues to power higher. After break above 11000, so long as 11200 proves no major hurdle, we could see 11600 or 10700. RSI staying in upper half of range is bullish.
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 broken above November falling highs, keeping recovery trend on course. Another break above 17800 could open the door for a near 200pts advance and return to November highs. RSI staying in upper half of range is bullish.
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
Gold found support around $1068 and broken back above $1074 (short-term double-bottom reversal?) helped by slightly weaker USD. Still very depressed. Still in major long term downtrend.
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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