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Major Support & Resistance (pivot points – explained):
Pivot Point: 6700; Support 1, 2 & 3: 6667, 6636, 6603; Resistance 1, 2 & 3: 6731, 6764, 6795
6700 didn’t prove a sticking point for long before we moved up to the next one – 6730 and the stubborn falling highs from end-October – but now we are back below both. Progress proving troublesome. Not helped by comments from activist investor Carl Icahn who said he was cautious on stocks and that the market could see a big drop and some more hawkish Fed comments outweighing the dovish. Daily momentum is still negative, but it has found some support, and a return to breakeven could rekindle the index’s uptrend.
While comments about markets being toppy don’t help, our analysis of December performance going back 18 years shows that of the major indices (UK Index , DAX, CAC, SPX, DJIA, NIK) the UK 100 has the best hit rate for December (17 positive performances out of 18) for an average gain of 2.1%, which although not the best average performance among the bunch, would take it back to October highs 6820. Furthermore, the UK index is underperforming its peers by 5-12% so far in 2013 (Nikkei excluded) meaning a valid case for catch-up into year end.
As we write, watch levels at 6675 support and 6705 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
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