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UK 100 Index Focus – 21 Jan

Major Support & Resistance (pivot points – explained):

Pivot Point: 6830; Support 1, 2 & 3: 6818, 6800, 6788; Resistance 1, 2 & 3: 6849, 6861, 6879

From one breakout to another. We have China’s central bank (PBOC) intervention to calm squeezed money markets to thank for the latest foray north overnight, this after the UK index outperformed a quiet European session (US markets closed) on hopes the IMF’s 2014 world economic outlook sees the UK receiving the biggest grade.

The quest for the UK flagship index to regain May highs 6875 and then all-time high 6950 remains, and the fact that the breakout level 6840 has held so far this morning is a good start. Just 100 points from joining index peers at record highs, albeit last to the party.

We note daily momentum taking a breather and 3-month hourly RSI back at overbought, but its recent lows holding in the upper half suggesting bullish momentum. Watch for it breaking lower. After a lack of data yesterday, it’s in the hands of ZEW surveys, a handful of central bank speakers and some US Q4 results to swing sentiment. Oh, and the IMF update.

 

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend, pause, breakout
  • Potential support: 6775, 6650
  • Potential resistance: 6875

Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.

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Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Sideways, breakout
  • Potential support: 6840, 6805, 6775, 6695, 6680
  • Potential resistance: 6865

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

  • Trend: Uptrend, pause, breakout, pause
  • Potential support: 6840, 6805, 6775, 6680
  • Potential resistance: 6865

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

  • Trend: Uptrend, pause, breakout
  • Potential support: 6840, 6805, 6775, 6740
  • Potential resistance: 6865

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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