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Equity indices are on the back foot again as investors digest the latest real-life episode of House of Cards. Claims that President Trump tried to strong-arm ex-FBI director Comey into dropping an investigation merely add fuel to the existing fires of political uncertainty, apparent White House incoherence slowly sapping faith in stimulus policies getting even partisan approval.
The UK’s UK Index is still outperforming, only just offside thanks to USD weakness providing a welcome FX boost, most notably to RB. The UK government selling its last bailout shares is helping LLOY while Fresnillo follows safe haven precious metals higher. Dragging on sentiment are HSBC & PRU (topped out), Shell (oil off highs; stronger EUR) and CRH (US concerns). Germany’s DAX sees strong gains for ThyssenKrupp offset by Utilities and EUR strength hurting exporters.
The UK Index 100 is trading 7517-7525 just shy of record highs. Potential for bullish flag. The DAX 30 is in the middle of a gently narrowing 12700-12840 range. Dow Jones Futures have bounced from 20819 to hold a 4-week sideways shift. Gold continues to extend its rebound, homing in on $1250.
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The UK Index 100 is trading 7517-7525 just shy of record highs. Potential for bullish flag if we get beyond 7525. A breach of current support may trigger a retrace.
Watch levels: Bullish 7525, Bearish 7517
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 in the middle of a gently narrowing 12700-12840 range. Which way will it head next? Higher or lower?
Watch levels: Bullish 12790, Bearish 12740
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 bounced from 20819 to hold a 4-week sideways shift. A bounce to 21000 is possible, but any breach of 20840 could mean this morning’s activity was a bearish flag that takes the index 100pts lower.
Watch levels: Bullish 20880; Bearish 20840
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 continues to extend its rebound, homing in on $1250.
Watch levels: Bullish $1249; Bearish $1245
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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