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Equity indices remain on the back foot as fears intensify about a delay to the US corporation tax cut, couples with some disappointing earnings, pulled shares further from recent record highs. All eyes on whether prior historic resistance turns supportive to revive the otherwise strong uptrend. Pause for consolidation, or start or a more meaningful correction?
The UK Index is being dragged lower by 70 of its 100 stocks, including VOD (profit taking), RDSb, AZN (still digesting results), BNZL (broker update), HSBC, ABF/BRBY (extending post-results declines) and SSE (dislike of M&A) contributing particularly heavily, overpowering gains by Miners (base metals off lows), IMB (defensive) and RBS (extending bounce).
Germany’s DAX underperforms as ProSiebenSat.1 Media falls even further (more broker downgrades), and weakness for VW/BMW (continues profit taking on EU emissions framework), Merck (still digesting results) and heavyweight Siemens (broker downgrade) eclipse advances by Deutsche Bank (extending breakout) and Adidas (bounce after results).
The UK Index 100 is holding above yesterday’s late 7457 lows. The DAX 30 has breached its rising channel, 13,100 late Oct resistance has turned supportive. Dow Jones Futures have also breached their rising channel, now sideways 23300-23600. Gold is holding its breakout at $1285.
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The UK Index 100 is holding above yesterday’s late 7457 lows
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 breached its rising channel, 13,100 late Oct resistance has turned supportive. RSI oversold
Watch levels: Bullish 13,180, Bearish 13,130
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 also breached their rising channel, now sideways 23300-23600
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 holding its breakout at $1285 after a bullish reversal
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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