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Equities are pretty flat today as geopolitical risk weighs on bullishness, awaiting news on Qatar’s response to Arab demands and following recent rumblings on the Korean peninsula. The USD has resumed its July bounce fuelling a pullback for oil and metals to further hampering risk appetite. However, parallel weakening in GBP and EUR is tempering weakness in the UK Index and DAX before US bourses return from yesterday’s Independence day break.
The UK 100 is flat to down, as losses for Oil majors (crude price drop), GSK (Citi downgrade) and UK Banks (less change of a BoE hike?) and NG (interest rate sensitive) offset gains for Miners (copper strike threat), BATS (defensive), TSCO (BOK results), RR (Jefferies upgrade) and Worldpay (M&A). Germany’s DAX sees weakness in Autos (weak UK New car registrations) offset standout strength for Adidas (HSBC upgrade), ThyssenKrupp (Tata UK pension deal) and Lufthansa.
The UK Index 100 is trading in a 7345-7390 channel, flirting with both support and resistance. Can it break higher? The DAX 30 is oscillating around 12450 within a 12400-15500 channel. Break higher or lower? Dow Jones Futures are hemmed in between flat support at 21460 and falling highs at 21500. Bullish flag, or bearish descending triangle? Gold is back testing $1220, potentially on the second leg of a bearish flag back to $1200.
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Possible support
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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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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
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
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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