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Major Support & Resistance (pivot points – explained):
Pivot Point: 6746; Support 1, 2 & 3: 6723, 6710, 6687; Resistance 1, 2 & 3: 6758, 6781, 6794
As the UK 100 pause continues, momentum continues to wane. We note that on the daily chart, the momentum indicator has dropped back to breakeven – a break of which has lead to a decline in the last 4 instances. Could this signal that the 8% rally has run its course? Or will the events of the next 36 hours (BOE, ECB, TWTR, US GDP, US NFP) boost global sentiment and see a resumption of the uptrend. A 1.3% correction doesn’t seem like enough digestion in my view. A 1/3 of the run-up would be more appropriate, taking us back to the 6660 level (Sept high) we have talked about.
There is much uncertainty over whether the ECB will offer anything helpful today (rate cut, LTRO). Then again, sometimes it’s amid such uncertainty that the biggest surprises emerge. US GDP data will also be watched for clues on whether tapering of Fed QE3 might need to be pushed out to 2014. After that, Twitter’s IPO will likely dominate the afternoon before Friday’s US non-Farm payrolls and yet another chance to discuss tapering.
6720 still holding as support, however, horizontal resistance at 6468 has been replaced by falling highs from last week at 6750. Likely quiet until German Industrial Production at 11am. Remember its Factory Orders surprised to the upside yesterday.
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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