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Major Support & Resistance (pivot points – explained):
Pivot: 6557; Support: 6529, 6510, 6483; Resistance: 6575, 6603, 6622
The rising trendline of intersecting support from 25 Jun remains intact, with a narrowing of the channel since 5 Jul.
Last week’s break above 6535 looks to have become an area of support, providing the index with a helpful platform for this morning’s revisit of 6600 thanks to Chinese Q2 GDP meeting expectations overnight. While confirming the inevitable slowing of the emerging market’s expansion, a collective sigh of relief that it wasn’t any weaker. Potential for the full-year official target to still be met, so long as second-half growth doesn’t collapse.
A revisit of the Bernanke-fuelled 6650 print last week is possible on continued accommodative and non-taper talk (Fed Chairman speaking again on Wednesday, lots of US data to sway sentiment) this week.
While the trend is your friend an all that (and I have the advantage of fresh eyes after some time off) note that the index has rallied 11% in 3 weeks – steeper that than the mid-April/mid-May 1-month 10.5% rally to make 6875. Many will hope the 6535 platform was the pause needed, and that a mid-rally correction is no required. With The sun out and trading volumes lighter the Summer months – like Christmas – can see exaggerated moves, but remember that last Summer was when the big run-up from 5200 began.
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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