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: 6574; Support 1, 2 & 3: 6553, 6519, 6499; Resistance 1, 2 & 3: 6608, 6629, 6663
The pre-Christmas Fed-taper-fuelled bounce has arrived at a key junction: 6600. A 3.2%, Santa Rally this week from below 6400 has allowed a test of the bugbear ceiling of falling highs which has held the index in a corrective down channel since end-October.
On the plus side, the prospect of Fed tapering has finally been taken as a positive, implying belief in economic recovery and faith in US interest rates staying low. This could help equities maintain a northerly course.
On the flip side volumes are low (normal pre-holiday) which can be both a positive and negative in terms of volatility. The index has also failed to decisively test 6600 this morning (bar that silly spike just before 7am). Furthermore, with daily having dropped back to near breakeven, we are cautious as to whether there is enough oopmh left to deliver a breakout or whether we are set to see another venture south to digest the week’s gains.
With tapering no longer a taboo subject, we also acknowledge the potential for markets to revert their gaze to any other issues (China cash crunch, Eurozone growth, etc) and stick the boot into current optimism. Call me a realist rather than a Scrooge!
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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