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Major Support & Resistance (pivot points – explained):
Pivot: 6505; Support: 6419, 6370, 6284; Resistance: 6554, 6640, 6689
Better US jobs and inflation data added to the fears of the Fed turning down the stimulus flow next month while better UK retail sales added to the theory that the BoE will hike rates earlier than it expects. Stocks dented hard with builders on prospect of less support for housing market, banks & miners on global growth fears and travel due to Middle Eastern unrest and failed US merger.
The UK 100 fell a significant 130pts at one point yesterday and many will be eyeing overnight support at 6460 and recovery of short-term momentum as boding well for a recovery from the lows of the summer range and a continuation of the sideways consolidation. Note the 125pt fall (11-6 Aug) into the bearish wedge pattern and subsequent 125pts from it yesterday. Correction complete?
The longer term graph still shows a lack of momentum suggesting the possibility of overnight support being merely just a pause before a sequel to yesterday’s clear-out (6400 and 200-day MA anyone?), with resistance this morning at 6495 being something to watch closely.
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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