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UK 100 Index Focus – 30 Dec

high and then

Major Support & Resistance (pivot points – explained):

Pivot Point: 6746; Support 1, 2 & 3: 6716, 6683, 6653; Resistance 1, 2 & 3:  6780, 6810, 6843

Since last week every time I expected a pause, the index has pushed higher. I’m conscious that thin volumes and lack of participants aren’t helping, so not too surprised to see a flat opening call develop into +20pts and then reverse after 60 mins trading.

US data continues to boost optimism in a global economic recovery. The cash crunch in China has eased, even if concerns linger and hard landing worries have receded. Japan is set to keep its stimulus taps open. The UK is doing rather well and Europe remains helpfully calm.

From what I am reading across the press, hearing and seeing on the charts, general positive sentiment from late 2013 appears to be setting markets up for a bullish start in 2014. On the UK 100 we are already closing in fast on the 6820 end-October highs. Could we see 6875 May highs and then 6940 all-time highs in Jan, with global recovery optimism helping reverse the 2013 underperformance of peers derived from a lack of direct UK exposure (which benefited the )? We’ll find out soon enough.

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend resumed after breakout from falling channel
  • Potential support: 6700
  • Potential resistance: 6820

Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.

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Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways, RSI back from overbought
  • Potential support: 6710
  • Potential resistance: 6820

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

  • Trend: Sideways to steep uptrend
  • Potential support: 6745
  • Potential resistance: 6785

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

  • Trend: Uptrend
  • Potential support: 6740
  • Potential resistance: 6770

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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