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Equity markets positive this morning despite a weak start, as traders assume China’s PMI Manufacturing miss will simply mean more policy stimulus from Beijing to keep the economic growth ball in the air. Markets looking through weak German and French PMI data, happy to see the Eurozone region wasn’t too impacted.
US corporate earnings remain mixed with beats by Amazon, Starbucks, AT&T and Visa overnight countering disappointments by tech giants and global growth and commodity barometer Caterpillar. Greece struggling to get a mention as Athens and Creditors start the real work of hammering out the finer details of a third bailout. Commodities still under enormous pressure from a strong USD, supply gluts and uncertain demand.
UK 100 testing 6670, attempting to break back above the trend-line of falling highs from 6810 on Tuesday. DAX30 regained 11500 after recent 350pt sell-off from 11800. Dow Jones found supoprt at 17700 after recent 450pt decline. Gold off its worst overnight levels (fresh 5.5yr low) but still very much in a downtrend, as USD index bounces back towards highs and peer commodities trend lower.
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UK 100 making breakout attempt from the week’s downtrend, back above the trendline of falling highs. Correction over? Rebound to recent highs and better? Beware resistance at 6760 from 200-day MA
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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 found support at 11440 and regained 11500. Not yet challenging falling highs from Monday. Weakness also never saw test of 11300 ceiling of prior 3.5-month falling channel for support. Beware resistance at 100-day MA 11600.
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
US Dow Jones dropped back below intersecting support and 200-day MA, but found support at rising July lows. Now in converging pattern but not much help as these tend to mean continuation of prior trend, which in this case is sideways 17600-18200 since early Feb
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’s back from fresh 5.5yr lows but still under enormous pressure from USD strength, no income, lack of safe-haven demand and poor performance this year, commodities rout, supply glut, uncertain demand. The list goes on. Downtrend from Jan accelerated mid-July and now wrestling with falling highs from yesterday.
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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