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Major Support & Resistance (pivot points – explained):
Pivot: 6593; Support: 6555, 6524, 6487; Resistance: 6624, 6661, 6692
Weakness has persisted on fears of Fed QE3 stimulus tapering in September, with Fed members chatty as ever on the subject and suggesting it’s possible and a much better US trade deficit (more exports, less imports) supporting the theory of US recovery. European data also good, but not helping out with some scepticism on sustainability.
Watch for reaction and knock-on to new governor Carney’s first BOE Quarterly inflation report and the much awaited details on new style market communication (forward guidance vs. QE) as well as any changes to outlook given the positive macro data run of late.
Bulls hoping that support holds at 6560, maintaining the congestion of rising lows from mid-July and keeping the summer sideways consolidation and thus uptrend from end-June (and even further back) in play. As we said though, a fall to mid-July lows of 6515 could still be acceptable in terms of it being just a 3% retrace from summer highs 6715.
Although index around breakeven, note around 14pts have been taken off for ex-dividends (BARC, BG, BP, BT, GSK, RB, REL, ULVR), suggesting the index holding its head above water in real terms.
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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