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Major bourses higher again this morning, following yesterday’s positive US and European close in reaction to US Q3 GDP beating expectations and solid US earnings reports continuing to slow through. Sentiment given a second wind overnight by the Bank of Japan surprisingly announcing more stimulus just after the US Fed turned its taps off, while speculation risen after weak German inflation that the ECB will have to do more.
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The UK’s UK 100 maintains its recovery uptrend, now comfortably above 6400, helped by revived risk-appetite from US data, corporate earnings and continued central bank assistance (ex-US).
Above its trend of rising highs, UK 100 support likely around round number 6500 while resistance possible around early-month highs 6560. Note Daily RSI rising but far from 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.
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Germany’s DAX continues its 2 week uptrend from 14-month lows and now that 9150 has been cleared, major resistance may be out of the way allowing a move back to September highs. The daily RSI is rising but not yet 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
US Dow Jones futures are already back testing September all-time highs helped by US GDP and data allowing for more confidence in its economic recovery and monetary policy normalisation.
After delivering an impressive 100% retracement of the sell-off, support may come in around 17190 whilst resistance possible at round numbers given this is uncharted territory. Note Daily RSI almost 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
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