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: 6683; Support 1, 2 & 3: 6662, 6621, 6600; Resistance 1, 2 & 3: 6724, 6745, 6786
The UK index is a having a good go at the trendline of falling highs from end-October at 6710, pulled up by US bourses hitting more new records on continued conflicting Fed talk and data supporting hopes of delay to the inevitable taper.
However, it has yet to make a decisive break-out. The correction may be coming to an end, but as they say, ‘it’s not over until it’s over’, and that requires a price break to confirm. We also note the daily chart’s momentum dropping back negative.
Should 6710 fail, we see downside to 6675 before support kicks in again. It would also keep the correction alive, and mean a revisit of 6640 and 6610 still possible. Gains into the end of the week often see cashing in as risk comes off the table.
If we do break higher, getting as above 6730/6740, then we’d be more optimistic of a revival of the longer-term uptrend and a push on to the October highs of 6820 and then May highs 6875. Could Santa be starting to rally up his troops?
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