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Equity markets are positive this morning after largely supportive PMI for the Eurozone added to boosted stimulus hopes following disappointing China manufacturing data. UK Index buoyed by Oil stocks after the rise in oil price and M&A activity involving CRH. Note worries persist about Greece and any hard-line stance amid debt talks. Gold still suffering from strong USD and despite safehaven demand from myriad uncertainty (global growth, Greece, corp results).
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The UK’s UK 100 maintains its uptrend for January, even if the intersecting trendline of rising lows has been lost via 6750 being tested again over the weekend. We now look to support around 6700 to keep the sideways channel intact and hope for this to serve as a pause before another venture north. Note falling highs from 26 Jan remain a threat.
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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 remains in what is a strong January uptrend, with the trendline of rising support still to see a proper challenge with support kicking in yet again at 10600 overnight. The morning’s approach of 18000 bodes well for further upside and a break above January highs although the shallow trend of falling highs should be monitored. Note Daily RSI still falling back from 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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US Dow Jones sits at the base of the falling 6-week channel highlighted last week, stuck around the 200-day moving average and still hindered by mixed corporate results and a disappointing slowing in Q4 GDP on Friday. Falling highs have in fact become more acute and the lack of bounce from China data and stimulus hopes may be in response to the weight of hawkish Fed rhetoric.
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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While Spot Gold recovered from a test near $1250 support it has failed to exceed the trendline of falling highs from 22 Jan which adds to the weakness since breaking below January’s rising support. Note the Daily RSI still falling back from overbought. Safehaven demand and strong USD still pulling the metal price in opposing directions.
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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