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Equity markets are pulling back this morning with UK 100 lagging most in anticipation of the UK’s general election – a cause for concern as markets hazard guesses as to what kind of coalition we will inevitably end up with, how complicated it will be and how long it will take to put together. Elsewhere, Germany’s DAX is trending down in a continuation of its pullback from 10 April highs with positive factory orders seemingly doing little to help a recovery. The US Dow Jones continues to bounce sideways along 17745 support as investors digest dovish Fed chat mixed in with chair Janet Yellen’s comments on ‘quite high’ US equity valuations. Gold is sinking having broken downwards out of what looked like a promising rising trend for the yellow metal with uncertainty surrounding the election, China slowdown, US rate rises and Greek debt worries failing to provide support.
UK 100 has broken below key support at 6900 and is testing the 6850 floor of the falling channel dating back to mid-April. Potential for bearish head & shoulders pattern mentioned yesterday to take the index even lower.
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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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Germany’s DAX is in a falling channel heading back towards potential support around 10600 having broken below the 100-day moving average and the trendline of rising support dating back to mid-October.
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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The US Dow Jones is testing yesterday’s lows and further weakness could erase all the month’s gains, taking the index back to 3-month lows. Note 200-day moving average could stem declines at at 17614.
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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Gold’s has continued its fall back from $1200 despite myriad uncertainty and a bond market rout. Safe haven demand not reacting to traditional drivers.
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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