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European equities are sharply negative as another major risk-off move grips global markets. Concerns that the White House has burnt bridges with the business sector, hurting the US dollar, has adversely affected UK and German stocks, the majority of which are reliant on foreign earnings. Damping sentiment further is the reaction to the tragic events in Barcelona, with major European travel stocks bearing the brunt of the negativity.
With only a handful of UK 100 stocks higher (including MNDI & RSA after upgrades and RRS on gold rally/safehaven demand), heavily-weighted risk-orientated sectors including Oilers, Pharmaceuticals, Miners and Banks, plus a mix of heavily-weighted foreign-focused Defensives (BATS, RB. IMB) are pulling the index lower. Germany’s DAX sees Tech and Pharma underperform, while Munich Re is the only riser of note.
The UK Index 100 is closing in on a return to 4-month support at 7300. The DAX 30 is falling from the ceiling of its 2-month downtrend, however survives a test of 12,100 support. Dow Jones Futures remain below 21,800 having broken their post-election uptrend overnight. Gold is testing 4-month resistance at $1290.
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The UK Index 100 is closing in on a return to 4-month support at 7300 having fallen below its 200-day moving average.
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 is falling from the ceiling of its 2-month downtrend, however survives a test of 12,100 support.
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 remain below 21,800 having broken their post-election uptrend overnight. Note RSI fallen below 50 for first time since May.
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 is testing 4-month resistance at $1295.
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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