Retail investors have been spooked by the latest rally in the stock markets across the advanced world, especially in US and UK, given both markets faced headwinds like US election, Fed policy normalization and Brexit. Mike Van Dulken, Head of Research for Accendo Markets , while speaking to Tip TV, noted the markets are currently focusing on positives (oil rally) than on multiple headwinds.
His technical charts took note of an upside breakout in FTSE, supported by rising RSI, but mentioned a strong resistance at 6600 levels. The German DAX index was described by Van Dulken as carrying a more or less a similar picture, with 10,900 as a key level to watch out for. Van Dulken also advised keeping an eye on rising lows formation on DJIA chart.
Precious metals pack has been doing well off late, with silver – semi industrial and precious metal doing a catching up with gold. Speaking about silver, Van Dulken said markets have become very "short-termist" and the current rally in prices amid equity rally goes against the safe-haven argument.