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Major Support & Resistance (pivot points – explained):
Pivot: 6615; Support: 6585, 6556, 6519; Resistance: 6652, 6689, 6719
And so the consolidation persists with the 6660 ceiling holding. The summer months often give rise to extremes in both volatility and sideways moves, and the latter can be serve well in terms of building up energy before a subsequent break (up or down). After the strong gains from end-June to mid-July, we believe that this is a pause before another up-leg, potentially back to may highs of 6875. However we are watching for any weakness around 6590 which could open up the chances of the consolidation being by a natural and healthy correction before the uptrend resumes.
Another disappointment from China with the HSBC PMI Manufacturing miss, however, we already know the nation is slowing and given the assurances that 7% GDP is the worst case scenario, markets may be able to live with some weak numbers for a while. USD still weak on expectations of QE3 and low rates for longer. Earnings reports still helping, with the likes of Apple, although seeing slower growth and lower margins, beating expectations.
Watch for any break above 6660 or below 6590 to cancel pause and resume play.
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
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
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
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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