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We were made to wait but the decisive move has arrived with correction continuing and the Mon-Tues bounce turning out to indeed be merely a pause (bearish flagpole pattern) before another bout of weakness. The culprit is heightened concerns from Ukraine/Russia along with a host of disappointing macro data and a flurry of negative M&A news with deals abandoned or risk thereof.
The UK’s UK 100 has fallen away sharply from breached 5-month rising support at 6680 and subsequently fallen below early August lows of 6620. This increases the possibility of a revisit of 6500 although we’d prefer to see fall below 6600 first. This also leaves today’s high 6650 and the abandoned 6700 as near-term resistance. Daily RSI yet to go oversold, which suggests further falls possible.
Germany’s DAX shows April lows 9085 being tested and the possibility of a drop back to March lows 8905. Yesterday’s 9200 highs likely now resistance. As expected, Daily RSI has stayed oversold while declines persist. The 1-week 5-min chart shows unbroken falling highs.
The US Dow Jones has fallen below its 200-day moving average 16468, which had been offering support, which means the potential for a drop back to Mar/Apr lows 16000, with 16600 now resistance. Like the DAX, daily RSI still oversold, but it can remain so. Respite possible via Apr/May lows of 16310.
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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
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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