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European markets have taken their lead this morning from the late rally seen in the US yesterday. US stock markets rallied after FOMC minuets showed the Fed still have concerns over the global economy, suggesting the interest rates could stay at record lows for some time. The S&P 500 and the Nasdaq both had their biggest one day gains in a year. US earning season also started positively as the mining bellwether Alcoa beat analysts’ expectations, with EPS up 71 percent on the previous year.
The UK’s UK 100 yo yo-ing continues as it has now re-taken (for the second time) the two key support levels that it broke below over the last two trading sessions. Now we ask yesterday’s question for the support level side, will the UK 100 sustain these support levels or will it once again break below? Resistance is slim to the upside giving the UK 100 potential room to have a run back up towards 6600 and 6700. But will it have the legs?
Germany’s DAX held at prior support yesterday before taking up the baton from the US markets and rallying back up. However, the one month downtrend is still intact as it struggles to break the falling resistance line. Some positives with be taken from the fact that prior support held firm and that the 20 day moving average has broken above the 50 day moving average. The RSI, however, has turned and is now heading lower.
The US Dow Jones took back virtually all the losses it had endured during the previous trading session yesterday after the release of the FOMC minutes suggested that interest rates could be held at record low levels for a longer period than previously expected. Resistance was met at 17000, a level traders will be keen to see the Dow cross before thoughts of new highs come into focus. Should 17000 be broken then there seems little in the form of resistance to stop a push towards 17200. Support on the downside may come at 16936 and 16913.
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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.
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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
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