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The majors have made more progress today from recent lows (some more than others) with US sentiment boosted by the Espirito Santo bailout, positive corporate results, hopes of a successful Gaza ceasefire and a positive Fed report on borrowing/lending outweighing overnight concerns in Asia after China Services PMI data fell markedly, Ukraine/Russian tensions returned, Moody’s cut French GDP estimates and this morning’s macro data failed to excite.
The UK’s UK 100 has regained 6700, edging closer to testing the 200-day MA which allows for more optimism about a revisit of 6835. A decisive break above 6700 is still required, however, with some resistance building around 6720, and any weakness resulting in a break below rising support 6670 potentially seeing us make a bee-line for 6500.
Germany’s DAX is holding above recent lows 9130 and April lows 9085, although it has yet to make a bounce to inspire confidence in a journey back to the breached 5-month uptrend at 9700. So this could still be just a pit-stop before further weakness and a fall back to 8900. Note the daily RSI is still oversold, but remember it could just stay there.
The US Dow Jones is holding above its 200-day moving average 16465, but yet to make enough of a bounce to get excited about a return to 17,000, which makes it a bit of a UK Index /DAX combination. Note daily RSI bouncing back from oversold and April/May lows close by should renewed weakness kick-in.
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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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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
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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