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Equities remain offside and under pressure as investors continue to reconcile the potential for higher US borrowing costs with high stock prices. The bond market sell-off and corresponding jitters among stocks has extended into the new week, further denting sentiment after what was a very strong January, itself on the coattails of a Santa Rally to behold.
The UK Index may well be off its worst levels, but the inability of this morning’s bounce to do any more than the close the gap down at 7395 has resulted in a pullback to 7350, that risks retreating all the way to 7320. UK Index now firmly offside year-to-date versus peers, with a still strong GBP serving as a major headwind amid hopes of a softer Brexit.
The UK UK Index is 95pts under water, weighed upon by RDSB/BP (lower oil), ULVR/BATS/DGE/(GBP strength), VOD/GSK/RB/RIO (M&A), HSBC (emerging markets) all depriving the index of at least 3pts a piece and barely 2pts assistance from sole positive contributors AAL/ANTO(higher copper price) and KGF (Homebase woes benefit B&Q owner).
The UK Index 100 is under pressure at 7350. The DAX 30 is nearing the apex of a narrowing pattern at 12700. Dow Jones Futures trade sideways, 25195-25445. Gold has bounced off $1330 thanks to a USD off its highs and safehaven demand.
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The UK Index 100 is under pressure again at 7350 after this morning’s failure to break back above 7395. For a longer term chart, ask your trader. Beware the risk of this pause being consolidation before another leg lower, similar to what we saw over the last week or so.
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 nearing the apex of a narrowing pattern at 12700. Not the downtrend weighs more heavily than the uptrend, potentially representing more resistance.
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 trade sideways, 25195-25445. A breakout could inspire recovery, but a breakdown could take the index back to rising support at 25000. Beware of this being consolidation before another leg lower.
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’s has bounced off $1330 thanks to a USD off its highs and safe-haven demand while equities remain under pressure.
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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