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Global equities are extending their correction from record highs, investors digesting a 7% plunge in oil prices as doubts grow about rising US production trumping OPEC cuts and key technical levels were breached. This piles pressure on the key commodity space which has already seen metals struggle under the weight of a strong USD before next week’s likely Fed hike. It also adds to divergent inflation data from China, hot on the heels of a surprise trade deficit, begging further questioning about the state of the world’s #2 economy, and thus global growth. All the while European political risk simmers.
The UK UK 100 is underperforming on account of its high exposure to Oil and Miners while a selection of defensives and financials also weigh, offsetting strength from Aviva (results, capital returns), Unilever (M&A hopes) and IAG (broker upgrade). In Germany, the DAX is in the red on account of losses for Autos eclipsing another up day for Adidas, Deutsche Bank and Lufthansa.
The UK Index 100 has breached 7290 as it extends its breakdown from 7310. The DAX 30 is penned in 11920-50, awaiting a driver for a break higher or lower. Dow Jones Futures have extended their declines to test 20835 support. Gold has extended its correction to near $1200 although major support may be lacking until $1180.
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UK 100 has breached 7290 as it extends its breakdown from 7310. back to 7250 to make it a 2% correction?
Watch levels: Bullish 7295, Bearish 7275
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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DAX 30 is penned in 11920-50, awaiting a driver for a break higher or lower.
Watch levels: Bullish 11965, Bearish 11905
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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Dow Jones Futures have extended their declines to test 20845 support.
Watch levels: Bullish 20,850, Bearish 20,815
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 has extended its correction to near $1200 although major support may be lacking until $1180.
Watch levels: Bullish $1208, Bearish $1200
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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