This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equities are hugging breakeven, investors wary of taking on any additional risk before Trump’s congressional address in the wee hours of tonight. This is seen as the platform from which he will elaborate on increased military and infrastructure spending as part of his ‘phenomenal’ stimulus pledge to boost US growth. Fresh USD weakness in spite of hawkish Fed commentary weighs on the UK’s UK Index and German DAX via GBP buoyancy and EUR strength.
The UK 100 benefits from strength in Aerospace & Defense (GKN, BAE, BAB, RR), Healthcare (AZN) and Banks (RBS) offsetting weakness in Oil (RDSb), Miners (RIO, BLT, GLEN, RRS) and a mix of Defensives (BATS, ULVR, BT). The DAX is underperforming, hindered by weakness in Tech and Industry overpowering strength in Banks.
The UK 100 has dropped back from 7280 resistance for another test of 7250. The DAX 30 has again found resistance at 11860 but remains in its Feb uptrend. Dow Jones Futures are in a bullish ascending triangle at 20830, awaiting a breakout trigger. Gold has pulled back to support at $1250, with longer term bullish flags towards $1280 ever valid.
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The UK 100 has dropped back from 7280 resistance for another test of 7250. Beware the risk of a bearish flag taking the index below 7240.
Watch levels: Bullish 7265, 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 again found resistance at 11860 but remains in its Feb uptrend.
Watch levels: Bullish 11875, Bearish 11790
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 in a bullish ascending triangle at 20830, awaiting a breakout trigger to complete a 3-week bullish flag from 20,000
Watch levels: Bullish 20,860, Bearish 20,810
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 has pulled back to support at $1250, with longer term bullish flags towards $1280 ever valid. Weaker USD helping, despite hawkish Fed comments from Kaplan (Voter, Neutral).
Watch levels: Bullish $1255, Bearish $1249
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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