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Equity markets are negative today as global risk-off sentiment continues into a second day. Safe-havens, led by precious metal Gold, are enjoying dramatically increased demand ahead of Thursday’s three key market events – the UK election, ECB policy meeting and ex-FBI chief Comey’s testimony. The US dollar is recovering having traded a fresh post-election low overnight to the detriment of Commodities, hurting the UK Index ‘s heavily weighted Mining sector. However, Crude Oil gaining some post-OPEC production cut footing on Qatari diplomatic concerns is helping the proportionally large Oil majors. Meanwhile, Sterling coming off its highs aids the index’s significant portion of overseas-earning stocks.
European investors have returned from their extended weekend to find the Euro continuing to trade within touching distance of 7-month highs, which has subsequently lead exporters to drag heavily on Germany’s DAX, as the index underperforms its Anglo-American peers.
The UK Index is engaged in a tug of war, with Copper Miners GLEN & BHP (Copper -1.5%), RBS (UK election jitters), CTEC (PE share placing), OML (SA political concerns, technical reversal), AZN ($2bn bond issue), CRH (US infrastructure policy concerns) all weighing on the index. Attempting to lift the index higher are HSBA (USD rallying from lows, relative regional stability), Retail Defensives RB & BATS (Sterling off highs), RDS (steady Oil prices, EUR strength) and GSK (rallying from 1690p intersecting support).
The UK Index 100 remains hindered by falling highs resistance at 7525. The DAX 30 has taken a leg lower after breaking 12,785 support. Dow Jones Futures have broken below overnight lows of 21,140. Gold has broken out from 11-month falling highs resistance of $1282.
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The UK Index 100 remains hindered by falling highs resistance at 7525. Pull back to test channel floor?
Watch levels: Bullish 7535, Bearish 7500
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 taken a leg lower after breaking 12,785 support, accelerating its fall from last week’s all time highs.
Watch levels: Bullish 12745, Bearish 12700
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 broken below overnight lows of 21,140.
Watch levels: Bullish 21,165; Bearish 21,120
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 has broken out from 11-month falling highs resistance of $1282. Note RSI approaching overbought.
Watch levels: Bullish $1297; Bearish $1289
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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