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Equity markets are mixed this morning, but with northerly trends intact. While some of the stimulus steam built up last week may have been lost, the UK Index in particular, the DAX and Wall St remain close to 10-week highs. This comes courtesy of central banks keeping the hot water running, in some cases opening the tap further (China), in other cases hinting they are prepared to do so (ECB). This has helped give the late September rebound a second wind, supported further by a decent earnings season, the FED likely having to hold fire on a rate hike until well into 2016 and hopes of major equity indices closing out the year above breakeven.
UK Index back from a test near 6500, but already seen 6400 serve as support. DAX holding above 10800 with potential to regain falling April highs at 11300. Wall St found resistance at 17600 after rallying back to 200-day MA and May falling highs. Gold back below $1170 in a slow declining channel from Oct $1190 highs.
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UK 100 made a test near 6500 before falling back to find support at 6400. Late September uptrend intact. Pause for breath continues. Another leg to the rally could see 6600 revisited.
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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 has broken above the key 10650 level which puts us back where the index has traded for most of the year. Potential for further gains to see April falling highs regained at 11300, although note the Daily RSI just gone overbought.
Solid Green line
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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US Dow Jones futures found resistance via a combination of the 200-day MA and May falling highs at 17600. A break out could see May highs revisited, while a pullback could see a retreat to 17200. As with the DAX, note RSI 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.
Click here for help with Support & Resistance Click here for help with technicals
Gold now in steady channel decline after strong rally to 3.5-month highs. Potential for this to be consolidation, but weaker EUR resulting in a stronger USD is a hindrance for the dollar-denominated safehaven metal.
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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