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: 6694; Support 1, 2 & 3: 6606, 6557, 6469; Resistance 1, 2 & 3: 6743, 6831, 6880
The UK 100 was hostage yesterday to ‘good US data is bad US data’ in terms of Fed QE3 tapering, as well as the ECB capitulating and cutting rates, suggesting dis-inflation a real worry in the single currency zone and a less convincing economic recovery after recent growth forecasts cuts. Add to this a strong Twitter debut fuelling concerns about a tech bubble and we have reason for the index to maintain its correction after its 8% rally.
Nonetheless, after a test of 6650 yesterday support has been found around the 6660 level we talked of yesterday. The daily graph does show momentum now negative (this lead to bigger corrections the last 4 times) but a break of 6650 would likely still be required before looking further south. A 2.5% correction is also 1/3 of the prior run-up and potentially enough of a digestion to keep an October uptrend to May highs alive.
With all but the US jobs data (Non-Farm Payrolls, Unemployment) and Consumer confidence left this week, could these data points disappoint and lead to reduced fears of earlier-than-March tapering and thus give risk appetite a boost into the weekend? Beware the breached 6700 now reverting to resistance.
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