This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Apologies: All graphs and comments as of 11:05am, but released late by email
Major Support & Resistance (pivot points – explained):
Pivot Point: 6508; Support 1, 2 & 3: 6459, 6430, 6381, ; Resistance 1, 2 & 3: 6538, 6587, 6616
It was already looking a little dodgy yesterday and the reversal followed by breaches of both 6500 and the trendline of rising 5-month support at 6485 is pretty significant seeing us again look as far south as the long-term (4.5yr) rising support all the way down at 6380.
In fact, looking at any shorter-term graphs offers little help, with identifiable historical support distinctly lacking (bar this morning’s lows). The correction from end-Oct and which accelerated since the end of November is still very much in full flow. As we have been saying for a good while now, ‘no evidence of a reversal yet’.
We do note, however, the momentum indicator already back at recent support and its own trendline of rising lows. Could the sharp sell–off this morning have served as the clear–out required for Santa to begin his rally?
Fed taper fears still ruling the roost (even though it looked like markets we OK with the prospect the other day), and markets may well remain driven by speculation and sentiment (positive and negative) on the issue until the FOMC meeting next week.
Watch levels: falling highs 6490 for a breakout, 6380 for long-term support to kick in.
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
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research