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Markets are lower again this morning after a very negative US finish as the Oil price fell further to print fresh 5yr lows and test $50/barrel on a combination of over-supply fears, a Saudi State owned oil company cutting prices to Europe and the US and a strong USD. This added to depressed global inflation expectations, while Greek political woes and its future within the single currency EUR added to existing unease about the global growth outlook. Gold maintains its uptrend from Jan 2 lows despite the strong USD on US rate rise expectations and monetary policy divergence round the world, resuming its safe haven relationship and traditional gains versus weak equities as market jitters (Greece, EUR, global growth) establish themselves.
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The UK’s UK 100 briefly broke prior support yesterday to trade at a 3 week low. The UK 100 is trading below all of its major moving averages with resistance possible at 6400 while support may hold again at 6326. The RSI is oversold.
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 is traded at a 3 week low this morning breaking below 9400 briefly, before regaining around 80 points. Resistance may be met at 9500 and 9600, whilst support may come around 9400.
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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US Dow Jones sold off heavily yesterday to trade at 3 week low. The 3 month uptrend is still intact with the trend line possibly giving support. Support may firstly come around 17500 with a breach bringing the 3 month trend line into play. Resistance may come at 17600 and again at the 50 day moving average around 17700.
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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Spot Gold has managed to break above 1200 to trade at a 3 week high, although resistance was met at 1214. The 50 day moving average has broken above the 100 day moving average, both of which could act as support. Should resistance at 1214 be broken then Gold could head towards mid December level’s of 1224. The RSI is 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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