This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Major Support & Resistance (pivot points – explained):
Pivot: 6630; Support: 6595, 6575, 6540; Resistance: 6652, 6686, 6708
Yesterday’s breakout level is already being tested. One hawkish Fed candidate withdrawal does not make for a sustainable late Summers relief rally.
Falling highs could prove a hurdle just above 6600 although these are very short-term and profit-taking after the recovery and breakout is not unexpected. In fact, we note rising lows at 6590 over a few weeks which may limit short-term downside and keep the uptrend alive.
Furthermore, Yes, tomorrow is the Fed update, but markets are expecting tapering (consensus $10bn) and if anything we believe there now to be potential for a lower figure to be announced as a token gesture to maintain credibility in light of comments about improving economic picture. Maybe even more of a focus on revised forward guidance.
On the long-term graph, a retest of the falling highs from May could put the breakout in jeopardy. Over the shorter-term, however, rising lows remain unbroken from late August at 6595 and will be eyed in terms keeping the late-August bounce on course for a recovery to the August highs of 6700. Watch for any break above 6610 or 6590.
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