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Global equities trade higher at midday in response to the Fed re-inspiring confidence in the US economy, fresh optimism Trump can finally get his Healthcare bill (and more?) through congress, a better performance by Macron than Le Pen in a pre-election TV debate, solid macro data from Europe and more positive corporate results.
The UK 100 benefits from HSBC & RDSb results, Banks welcoming HSBC results and a possible June Fed rate hike, as well as fresh US optimism for GSK (Healthcare bill progress) and CRH (healthcare bill could pave way for infrastructure spending). Hindering is fresh GBP strength (UK PMI Services), Miners (metals price weakness; poor China PMI, Fed sent USD higher) and Next (Q1 results). Germany’s DAX outperforms on Adidas results, BMW sales and Banks liking both a hawkish Fed and solid Eurozone data (PMI Services, Retail Sales), fighting off EUR strength that would normally prove a headwind.
The UK Index 100 is in the midst of a bullish double breakout at 7250, opening the door for a return to 7300. The DAX 30 trades fresh all-time highs above 12600. Dow Jones Futures have bounced back above 21000 which keeps alive a potential bullish flag to 21265. Gold has made a bearish breach of $1240 that could take it back to $1200.
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The UK Index 100 is in the midst of a bullish double breakout at 7250, opening the door for a return to 7300.
Watch levels: Bullish 7285; 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 trades fresh all-time highs above 12600. Note the overbought RSI
Watch levels: Bullish 12650; Bearish 12590
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 bounced back above 21000 which keeps alive a potential bullish flag to 21265.
Watch levels: Bullish 21,020; Bearish 20,990
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 accelerated its April reversal with a bearish breach of $1240 that could take it back to $1215, maybe even $1200. Note daily RSI not yet oversold.
Watch levels: Bullish $1237; Bearish $1232
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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