This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Major Support & Resistance (pivot points – explained):
Pivot Point: 6550; Support 1, 2 & 3: 6517, 6471, 6437; Resistance 1, 2 & 3: 6597, 6631, 6678
A US debt ceiling deal we have, but a relief rally we do not. The prospect of a repeat political standoff in a few months is not what markets want after two weeks of uncertainty.
The old adage ‘Buy on rumour, sell on news’ couldn’t be more apt, exacerbated by a US downgrade by Chinese ratings agency Dagong and speculation that major US peer Fitch might follow suit so soon after its warning, and S&P putting the cost of the shutdown at 0.6% of Q4 GDP.
We’re off our ‘hopes of a deal’ high of 6585 (also the highs of late September) and testing the trendline of rising lows from 9 Oct at 6545. We do, however, remain above the 6500 round number around which we have oscillated since April. This could cushion any weakness as we adjust to a fully functioning US government again.
Note the dump of delayed US macro-economic data that needs releasing. Will it start on Monday? Will it support risk appetite by justifying a further delay in tapering by the Fed? Or will missing data prove a hindrance and add to confusion?
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
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research