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Global equity markets are positive across the board as investors position themselves ahead of key macroeconomic and political events remaining this week, while geopolitical concerns (North Korea/Syria) are being brushed aside as bullish appetite returns. Commodities, led by crude oil, are surging following a larger than expected API inventory drawdown, the return of Chinese markets after an extended weekend, and US President Trump suggesting infrastructure spending could exceed $1 trillion.
The UK 100 is being led, understandably, by Oil majors BP and Shell, with Miners BHP, RIO and GLEN (copper rally), and HSBC (China market return) are also contributing significant gains. At the other end of the index, Pharmaceuticals SHP, AZN & GSK weigh (Trump healthcare reform uncertainty, Sterling strength following strong macro data), while Barclays (technical breakdown), BATS (Sterling strength), Old Mutual (S&P South African sovereign rating downgrade, political troubles ongoing) and Croda (Credit Suisse downgrade) are also keeping a lid on gains.
On Germany’s DAX, strong recoveries from both Commerzbank and Deutsche Bank following yesterday’s weakness are helping to lead the index higher, while Auto producers BMW and Daimler continue to lag on US auto demand concerns.
The UK Index 100 has continued yesterday’s bounce from 7260, although has failed to overcome 7350 falling highs resistance. The DAX 30 continues to fall back from Monday’s 12,380 highs, unable to overcome falling highs resistance at 12,300. Dow Jones Futures have found bullish momentum for attempt to overcome 20720 resistance. Gold has broken down from $1255 rising lows support since Friday.
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The UK Index 100 has continued Monday’s bounce from 7260, although has failed to overcome 7350 falling highs resistance. Currently testing 7330 rising lows support. Bounce or breakdown?
Watch levels: Bullish 7360, Bearish 7220
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 continues to fall back from Monday’s 12,380 highs, unable to overcome falling highs resistance at 12,300, although holding above 12,245 rising lows support.
Watch levels: Bullish 12260, Bearish 12235
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 found bullish momentum for attempt to overcome 20720 resistance. First challenge failed. Second attempt on the cards? Note possible bullish flag pattern to 20810.
Watch levels: Bullish 20,610, Bearish 20,580
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 broken down from $1255 rising lows support since Friday. Could it hold above $1252 or fall all the way back to $1241 channel floor?
Watch levels: Bullish $1262, 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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