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Equities are back in positive territory following a negative open as the rejection of Italy’s constitutional reforms and departure of PM Matteo Renzi has done little to hamper investor sentiment. Early losses were pared as swift moves were made by European finance ministers to reject the notion of a renewed Eurozone crisis, alongside the realisation of many investors that the status quo in Italian politics is to be continued (whether that is a positive or negative remains to be seen). Note, should snap elections be called and the anti-Euro Five Star Movement – the group that led the ‘No’ campaign – take power, without constitutional reform a referendum on Italy’s Euro membership cannot be called. Sweet irony?
A surge in Oil prices shortly after European market open stoked the rally, however this has since faltered, leading the Oil-heavy weighted UK 100 index to pare earlier gains. Financial sector concerns weigh as the future of Italian banks’ planned recapitalisation efforts (with €360bn of non-performing loans currently on their books) is thrown into doubt following Renzi’s departure.
The UK 100 has pared the majority of gains made early in the session as the index failed to maintain a breakout from two-week falling highs resistance at 6750. The DAX 30 has rebounded from three and a half week lows towards the ceiling of its 3-week downtrend. Dow Jones Futures have broken out of last week’s narrowing pattern to once more post fresh all-time highs. Gold has recovered from lows of $1162 however remains in the bottom half of its 3-day trading channel.
The UK 100 has pared the majority of gains made early in the session as the index failed to maintain a breakout from two-week falling highs resistance at 6750.
Watch levels: Bullish 6760, Bearish 6700
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 rebounded from three and a half week lows towards the ceiling of its 3-week downtrend.
Watch levels: Bullish 10740, Bearish 10480
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 out of last week’s narrowing pattern to once more post fresh all-time highs. Bullish flag pattern?
Watch levels: Bullish 19260, Bearish 19220
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
Gold has recovered from lows of $1162 however remains in the bottom half of its 3-day trading channel.
Watch levels: Bullish $1179, Bearish $1161
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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