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Major Support & Resistance (pivot points – explained):
Pivot Point: 6709; Support 1, 2 & 3: 6681, 6659, 6630; Resistance 1, 2 & 3: 6731, 6760, 6782
Two of the markets’ favourites (QE3 tapering and China; the third is Europe) have served to spoil the bullish revival party and see the UK index decisively break below the key 6700 level. The downtrend from end-October continues and the possibility of a revisit of the recent 6640 lows is high. Falling resistance now also around the same level as the high of this week – 6740.
Commentary by Fed officials continues to confound, with some for more stimulus and some for less, some talking of a December taper and some of later. Recent jobs data saw markets turn their focus to economic recovery over stimulus reduction. But just as quickly we are back worrying about the same old.
In China the big political meeting communique yielded little in terms of specifics on reforms so its looks we may have to wait for new growth targets and details, although one big change is the potentially bigger role for markets to play in the economy over the state. Some liberalization, to help with inevitable slowing growth after decades of strength.
The big event today which could move UK markets (and GBP) is the BoE’s quarterly inflation report which may see changes to economic projections and forward guidance in light of recent growth, jobs and inflation prints. Lower inflation suggests that rate rise knock-out is off the table. Now what about unempl0yment as the next, growth forecasts and of course the timing of first rate rise? Will the markets believe Governor Carney this time?
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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