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It’s risk-on Monday with UK 100 testing 6800 while DAX and Dow remain in the throes of bullish double bottom reversal patterns. Gold continues to dip below $1200 as capital comes out of safe-haven deposits and back into equities on renewed hope for Greek bailout negotiations.
A new proposal presented by Athens to creditors thought to contain further concessions (likely reneging on election pledges made by Syriza) has bouyed (fickle) global markets which have rallied strongly in futures trading and continue to push higher this morning albeit at a slower pace. We’ve been here before countless times though. Will today prove to be different, or will it bring more of the same as the end-June deadline for bundled loan repayments fast approaches?
UK 100 has encountered resistance at 6800 after rallying strongly to break above prior resistance at the 200-day moving average 6744. Potential bottom at 6650 and near 100pt recovery from there makes a break out from the May/June downtrend possible, but entirely dependent upon the outcome of today’s emergency summit on Greece.
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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 still giving hope that a bullish double-bottom reversal is in play the index continuing to rally upwards of 11,350 to test 3-June highs 11,516. Potential for a breakout of a 2.5 month falling channel and rising 8-month trend line provided we get a favourable outcome in Greek debt negotiations.
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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Like the DAX, the US Dow Jones looks to be continuing in a bullish-double bottom reversal with support kicking in twice at 17700 in June. The index remains in an upwards trending channel with a break above 18,200 putting prior all-time highs within reach.
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 has fallen back below $1200 with a bearish double top formation pressuring the yellow metal while a Greece-inspired risk-on mentality dominates as we start the week, reversing gains made last week on a dovish Fed update and weaker USD with Greek optimism replacing concerns for the time being. 200-period moving average now breached.
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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