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Equity markets are positive this morning with UK 100 , DAX and Dow Jones indices all safely in the blue off the back of yesterday’s dovish chatter from Mario Draghi. Extension of QE to come as early as December? The current round is not finished yet, which should surely set alarm bells ringing as to the health of the European economy even if it does mean even cheaper money for even longer. Markets are not concerned, evidently preferring to make hay while the sun shines. Let’s wait and see then.
Note US futures also benefitting from strong earnings reports with Microsoft (MSFT), AT&T (T) and Alphabet (GOOGL). The UK’s ARM Holdings (ARM) up another 2.5% this morning and helping the UK Index higher on bullish tech sector sentiment while miners engaging in some upside volatility.
Gold also up. Strong US Dollar and a risk-on Europe should all be weighing, but those alarm bells I mentioned above could be sending some into the safe haven commodity, a view supported by dollar strength reflecting high demand for gold’s fellow ‘port in a storm.’
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UK 100 broke out of falling channel, potentially triggering the second leg of recovery from late Sept lows. Note possible formation of bearish double top with resistance at 6430.
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 hitherto bugbear level 10,500. potential for consolidation before further gains while we note MACD peaked at long term high indicating the index may be overbought and due a larger correction.
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 have met resistance at the 200-day MA. A break above could see renewed bullishness and further test of 4-month falling highs.
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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Gold now back above $1170, support at $1165. Note still in a downtrend since 14 oct.
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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