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Equities mixed this morning with UK 100 finding support around 6540, the Dow Jones around 17550 but DAX30 continuing last week’s sell-off to trade 100pts lower. Gold bounced back >$1100. This follows a risk-off week due to mixed US/European corporate results, global growth and monetary policy uncertainty and no let-up in commodity price weakness.
Negative China industrial profits growth has added to Friday’s PMI Manufacturing disappointment and added to concerns about the nation’s slowing economic growth, with equities in Beijing and Shanghai turning back from recent intervention-driven recovery. Note talk of Greece throwing banana skins under final bailout negotiations (limiting oversight access) which could delay August deal and require another bridge loan to cover the month’s debt repayments. Investors also showing reticence to commit ahead of US and UK GDP updates and latest Federal Reserve thinking on interest rates.
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UK 100 found support around 6550 although still in downtrend from recent 6815 highs. Falling resistance at 6650 needs to be broken to allow full retracement of last week’s losses. Trading well below 200-day MA 6761.
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Possible support
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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 testing ceiling of old falling channel at 11200 after sell-off from 11800. Off worst levels but not doing as well as UK and US peers. Holding above 200-day MA at 10841
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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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US Dow Jones still in downtrend from 18100 but stemmed declines after two tests of 17550 which is just above recent lows of 17500. Risk of shallow falling lows seeing a revisit of 17400. Trading well below 200-day MA 17813
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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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Gold’s bounced from support at $1077 but still hindered by mid-may and mid-June downtrends, which could stifle recovery at falling highs $1130-1140. USD strength and commodity price sell-off weighing heavily, along with no income, lack of investor panic and poor performance. Note, however, daily RSI recovering from oversold which is last did in March and November before rallying strongly.
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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