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Equity indices are positive as we dissect ongoing OPEC commentary from Vienna and despite Crude Oil price volatility. A 3% sell-off shortly after 9am highlights volatility, although note both Brent and US benchmarks staging a minor recovery. While a 9-month extension to production cuts is widely anticipated, comments from delegates are expected to move prices significantly and remain a driver throughout the day. The UK 100 underperforms as UK GDP marginally misses estimates, although remains above water as the translational benefit of a US dollar rally aids the UK’s majority foreign earning contingent alongside Germany’s plethora of exporters.
The UK 100 is buoyed by a Defensive mish-mash of BATS, ULVR, RB., RDS, NG. & AZN (US dollar rally), VOD (momentum trade) and select Banks HSBA & LLOY (US Fed rate hike expectation). This offsets losses contributed by BP (Oil volatility), RIO & AAL (Iron Ore/Copper weakness), BT (Exane downgrade) and BARC, GSK & DGE (investors rotating out of stocks).
The UK Index 100 has recovered from a test of 7500 however is hampered by 7525 resistance. The DAX 30 has also staged a recovery from 12600 support, however is once again on the backfoot. Dow Jones Futures are testing April highs of 21070 for a march to all-time highs. Gold is testing support at $1256 following breakdown on account of USD strength.
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The UK Index 100 has recovered from a test of 7500 however is hampered by 7525 resistance. OPEC-inspired breakout or breakdown?
Watch levels: Bullish 7530, Bearish 7515
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 has also staged a recovery from 12600 support, however is once again on the backfoot. All the way back to support?
Watch levels: Bullish 12675, Bearish 12645
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
Dow Jones Futures are testing April highs of 21070 for a march to all-time highs.
Watch levels: Bullish 21,095; Bearish 21,055
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 is testing support at $1256 following breakdown on account of USD strength.
Watch levels: Bullish $1257; Bearish $1255.5
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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