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Equity indices are once again struggling as a Washington DC-inspired risk-off mood moves into a second day, global media relentless in its quest for more White House scoops. However, the European pull back remains relatively subdued in the wake of the worst US session since September showing that, despite the talk, investors aren’t reaching for the panic button yet.
The UK 100 is underperforming peers as dividends compound the risk-off move. Leading the index lower are heavyweights RDS & BP (Oil price off highs, RDS ex-div), HSBC (ex-div), GLEN (Copper weakness), Banks and Healthcare (waning US optimism). Limited support is offered by BRBY (positive results), Utilities (Defensive safe haven) and Retail (UK Retail Sales beat). Germany’s DAX is suffering from persistent EUR strength, hurting exporters, while Banks and Industry also weigh. Note Wall Street futures outperforming as investors take stock of Wednesday’s 370 point sell-off.
The UK Index 100 is testing 7400 intersecting support having broken through a duo of support at 7448 former all-time highs. The DAX 30 has recovered from test of 12500, however remains weak. Note potential bearish flag pattern emerging Dow Jones Futures have broken below support at 20,625, although are yet to fall below 20,500. Gold’s rebound has now overcome $1260, bringing back into play 2017 rising lows support.
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The UK Index 100 is testing 7400 intersecting support having broken through a duo of support at 7448 former all-time highs.
Watch levels: Bullish 7425, Bearish 7390
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 recovered from test of 12500, however remains weak. Note potential bearish flag pattern emerging
Watch levels: Bullish 12540, Bearish 12508
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 support at 20,625, although are yet to fall below 20,500.
Watch levels: Bullish 20545; Bearish 20512
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’s rebound has now overcome $1262, bringing back into play 2017 rising lows support.
Watch levels: Bullish $1265; Bearish $1254
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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