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Major Support & Resistance (pivot points – explained):
Pivot Point: 6798; Support 1, 2 & 3: 6745, 6707, 6653; Resistance 1, 2 & 3: 6837, 6890, 6929
Contracting China Manufacturing PMI followed by a weak US print yesterday revived global growth concerns. This was exacerbated by volatility in emerging market FX and overnight by more fears on China (skeletons in ‘shadow banking’ cupboards, credit risk alert on coal industry).
1-week lows of 6805 have been breached in favour of trendline of highs from early Jan at 6760. This level held up overnight, but is being tested as we write. We are concerned by the failure overnight to test the 6805 breakdown level of yesterday and note the potential for the index to retrace to mid-Jan lows of 6695. Then again, while 2014 risk appetite may have taken a knock the 1.5% correction is not much more than that from Jan 7-9.
Daily momentum back negative but 3-month hourly Relative Strength Indicator (RSI) close to oversold after retreat from overbought. No top-tier macro data to drive markets today although Q4 updates from US corporates could sway sentiment Honeywell, Procter & Gamble, Xerox, Kimberly-Clark and Black & Decker.
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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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