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: 6753; Support 1, 2 & 3: 6721, 6662, 6630; Resistance 1, 2 & 3: 6813, 6845, 6905
The down-swing was sharp, but the up-swing has been even sharper, delivering the breakout that bulls have been waiting for patiently. This opens up the possibility of a revisit of the late October high of 6820 and then the late May pre-taper talk highs of 6875, however, after all this time beware of these levels proving hurdles.
The revival of optimism comes thanks to US macro data, the first of the US Banks’ Q4 results, the Word bank upping its global growth forecasts and some more hawkish Fed member commentary being interpreted as the US economy being ready for tapering, maybe even an acceleration of it.
We now look for 6775 to revert to support to help resume the long-term uptrend after the festive pause 6700-6775. Daily momentum back positive (although yet to make a significant move higher). What’s helping the index today (in terms of points contribution) is predominantly the high-beta names suggesting appetite for risk, and as might be expected the low-beta defensives suffering (IMT ex-div).
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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