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UK Index , Dax & Dow all still trading within confines of 2-week narrowing continuation patterns. A breakdown would likely see resumption of prevailing downtrends while a breakout bettering late Aug highs could deliver retracement of recent losses. Gold still hovering around $1120, still under pressure from Aug falling highs.
Equities on the front foot again this morning thanks to mixed China data being taken positively. While exports were weak for a second consecutive month they weren’t as weak as expected which plays in favour of global growth recovery hopes (along with upwardly revised Japanese GDP and German rebound in exports and imports). Thereafter, much weaker China imports adds to concerns about fragile domestic growth but just goes to boost prospects of more risk asset pleasing stimulus from Beijing and the overall mixed picture coupled with Summer market volatility adds to arguments against the Fed hiking rates next week.
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UK 100 still in narrowing pattern. A breakdown would likely mean continuation of accelerated downtrend from 11 Aug. Rising lows from 5770 still valid but break above 6260 needed before assuming full retrace of Aug losses.
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 in a cross between narrowing pattern and a wedge. The former is a continuation pattern or exiting trend while the latter usually signals potential for bullish reversal.
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 futures still in narrowing pattern with highs of the day at ceiling. As with peers a breakdown is likely to result in continuation of prior downtrend while a breakout could engineer a recovery should late Aug highs be exceeded.
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 hovering around $1120 trying to resist continuation of downtrend from Aug highs. Bearish descending triangle can’t be ignored with risk of a break lower.
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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