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: 6531; Support 1, 2 & 3: 6483, 6399, 6351; Resistance 1, 2 & 3: 6614, 6662, 6745
The bearded one has delivered his pre-Christmas rally! However, it wasn’t the bringer of children’s toys but the US Fed chairman with his economic optimism-driven taper of QE3 – taken by markets as an economic positive (improving conditions, genuine recovery) as opposed to a policy negative (less bond buying, less easy money) – and reinforced highly accommodative forward guidance (rates low for long after QE, until unemployment <6.5%).
Nonetheless, relief that the US central bank has finally got on with it, ending the 6-month preparatory tease, has failed to see a breakout from the continuation pattern mentioned yesterday get far enough to challenge the falling highs from end-October, meaning the downtrend still intact.
In terms of December we are still down 100pts (-1.5%), but if we take the traditional Santa Rally as having started overnight on Sun/Mon, at the start of the pre-Christmas week (more normal), then we have seen a 2.8% gain from bottom to top. Bulls will like the fact that the daily momentum indicator is back positive and we are back above the 200-day moving average.
It’s a new dawn, it’s a new day and its a new world in terms of being marginally less stimulating in the monetary policy sense. Now let’s see whether this week’s momentum can hold into the holidays and year-end.
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