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Equity markets somewhat lacklustre this morning, with the UK 100 just above the waterline but peers the German DAX and US Dow Jones in the red – the former suffering after disappointing Q3 results from tyre manufacturer Continental, adding to woes for the index’s key car manufacturing sector and the latter digesting raised odds of a December US rate hike. Add to this a cut to the OECD’s 2015 global growth outlook, citing slowing EM growth, hot on the heels of disappointing trade data China trade data and we have recipe for the recent rally to take a pause.
UK 100 consolidating around 6360 near the apex of converging support and resistance, DAX holding its uptrend with the 200-day MA lurking just above current levels. Wall St sideways since last Tuesday, while Gold found support in the face of USD headwinds.
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UK 100 fast approaching the apex of a 1-week converging pattern around 6350. Longer term, still potential for a breakout from bullish ascending triangle to send the index back towards 6700.
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 holding its strong uptrend from end-Sept but also in the midst of a shallower 2-week rising channel (10800-11070). Pause before resumption of rally or breakdown? 200-day MA coincides with recent highs.
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
US Dow Jones futures taking a pause amid its strong uptrend. Having broken above shallow falling highs at 17800, potential for revisit of 18200. Note however, the RSI about to turn down from overbought and about to test rising support.
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
Gold found support around $1085 after extreme weakness in the face of a stronger USD. Uncertain whether the downtrend is over. Daily RSI off its oversold lows but yet to break out.
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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