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Major Support & Resistance (pivot points – explained):
Pivot Point: 6582; Support 1, 2 & 3: 6551, 6498, 6467; Resistance 1, 2 & 3: 6636, 6666, 6720
The index maintains its 2-week uptrend reversal, with a break above 6585 being pivotal overnight, potentially reverting to support and a base for another push back towards August and September highs of 6665 and 6705. Sentiment boosted by US turnaround (ignoring potential for another impasse, or simply pricing in QE3 for longer after government shutdown?) and a welcome re-acceleration in China Q3 GDP growth after a slow Q2.
Trend-wise, we note Support from rising lows and prior highs at 6585 with Resistance likely at rising ceiling of 2-week channel at 6660 (this also corresponds with mid-September highs). The 1-week graph puts the levels at 6560 and 6640 while the 3-month chart shows some good up-waves since 6500 which could support the case for any run-up to 6665.
Long term, we still need a break above 6665 to counter the trend of falling highs since May. A bettering of 6705 would be even better. Beware of US data flowing through from next week, notably Non-Farm Payrolls on Tuesday, which has potential to spice thing up markedly.
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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