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European equities are pretty flat into the new week, investors awaiting elaboration, if not confirmation, of major US tax changes from Trump to justify a near 3-month rally since his election. A USD off overnight rebound highs, however, has evaporated what was initially helpful GBP and EUR weakness, the GBP having dropped on fears of another Scottish referendum on independence due to Brexit. This while European politics (FR, NL) keep things spicy and M&A optimism suffers further from competition demands looking set to scupper an LSE-Deutsche Boerse merger.
The UK’s UK 100 is keeping its head above water driven by an oil price rebound (RDSb & BP), a handful of Miners (BLT, AAL), certain defensives (GSK, BATS) and banks (HSBC, LLOY). This offsets weakness from RBS (fallout from FY results), DLG and ADM (legal changes), LSE (M&A collapse) and defensives including ABF (FY results), BT, IMB, SSE and NG. Germany’s DAX is flat as gains for Adidas offset losses for Deutsche Boerse and a stronger EUR serves to hinder exporters.
The UK 100 has dropped back to test 7250 for support. Bounce or break? The DAX 30 has found resistance at 11850 but remains in its Feb uptrend. Dow Jones Futures have retreated from record highs to trade back below 20800. Gold is taking a breather after reaching its 200-day moving average, but bullish flags towards $1280 still valid.
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The UK 100 has dropped back to test 7250 for support. Bounce or break?
Watch levels: Bullish 7235, Bearish 7245
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 found resistance at 11850 but remains in its Feb uptrend
Watch levels: Bullish 11875, Bearish 11795
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 retreated from record highs to trade back below 20800. Note the RSI’s negative divergence with the price. Warning?
Watch levels: Bullish 20,810, Bearish 20,775
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 taking a breather after reaching its 200-day moving average, but bullish flags towards $1280 still valid. In fact, has another mini flag formed over the last 4 days? RSI remains bullish in upper half of range
Watch levels: Bullish $1257, 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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