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Equity markets are making a negative start to the week as a significant dearth of macroeconomic and corporate news is leaving investors with a lack of drivers, while the confirmation that Article 50 will be triggered on 29 March is being met with a muted response. The US dollar, whilst off its 5-week lows, remains weak, which is hindering both the UK’s UK Index and Germany’s DAX in the form of translational GBP and EUR strength. Crude Oil prices remain under pressure on concerns of rising US production while base metals are mixed (Aluminium positive, Copper/Iron Ore/Zinc negative), further hampering market sentiment.
With no real drivers, the UK 100 is being led by ABF (Goldman Sachs upgrade) and a mish-mash of exporting defensives (RB., ULVR, NG. DGE), whilst understandably, the heavily weighted BP and RDSb (falling crude oil prices) are bringing up the rear alongside Banks (Deutsche Bank raising fresh capital), Pharmaceuticals (USD near 5-week lows) and Miners (commodities struggling). Germany’s DAX is being weighed on by Deutsche Bank (>3% lower) as the Bank announces it’s offering almost 700m shares at a 35% discount.
The UK Index 100 trading in a narrow rising channel, although is yet to make a significant move above 7415 or below 7405. The DAX 30 is trading in an increasingly narrow range in its retracement from Thursday’s 12180 highs. Dow Jones Futures are bouncing from 20880 lows after falling overnight. Gold is falling back to $1231 intersecting support having overcome resistance at that level overnight.
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The UK Index 100 trading in a narrow rising channel, although is yet to make a significant move above 7415 or below 7405. Could a break below the latter level confirm a bearish flag pattern?
Watch levels: Bullish 7430, Bearish 7400
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 trading in an increasingly narrow range in its retracement from Thursday’s 12180 highs. Break higher or lower?
Watch levels: Bullish 12080, Bearish 12035
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 are bouncing from 20880 lows after falling overnight. Could a breakout from 21000 ceiling confirm a bullish pennant pattern?
Watch levels: Bullish 20,940, Bearish 20,870
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 falling back to $1231 intersecting support having overcome resistance at that level overnight. Bounce for challenge of $1237?
Watch levels: Bullish $1234, Bearish $1230
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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