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Global equities have regained poise, albeit off their best levels, as enthusiasm peters out ahead of multiple Fed speakers today and tomorrow’s UK triggering of Article 50 to leave the EU. The risk asset rebound, however, suggests Trump being offered a second chance (how many is that now?) to get his pledged policy changes (tax reform, bank dereg, infr. spending) through congress to boost the US economy. Support for the USD Index by way of 10-month rising lows also helps the UK UK Index and German DAX by way of maintaining the reversal of yesterday’s unwelcome GBP and EUR strength.
A bounce for metals (especially copper) and oil is understandably helping the UK Index ‘s Oil/Miners, while Financials and the US-exposed names (PSON, CCL, DGE) join them as the index’s biggest positive drivers. At the other end, holding back sentiment are Consumer Staples (RB, ULVR), Telcos (VOD, BT) and UK-focused Lloyds. Note strength among a mix of Autos/Financials and Tech helping Germany’s DAX outperform.
The UK Index 100 rebound has found resistance at 7325, pulling back for a re-test of 7300. The DAX 30 bounce has lost momentum at 12080. Dow Jones Futures have seen their rally turn back from 20600. Gold, back from $1260 highs, could be in the midst of another bullish flag that leads to a meaningful breakout.
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The UK Index 100 rebound has found 4-month intersecting resistance at 7325 (completed bullish double bottom) reversal, pulling back for a retest of 7300. Longer-term 9-month uptrend still valid after yesterday’s 7260 bounce.
Watch levels: Bullish 7305, Bearish 7290
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 DAX 30 bounce has lost momentum at 12080. Back towards 12000?
Watch levels: Bullish 12090, Bearish 12040
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 seen their rally turn back from 20600. New falling channel. RSI still oversold.
Watch levels: Bullish 20,570, Bearish 20,540
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 back from $1260 highs, could be in the midst of another bullish flag that leads to a meaningful breakout. RSI holding bullishly
Watch levels: Bullish $1256, Bearish $1251
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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