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Major Support & Resistance (pivot points – explained):
Pivot Point: 6676; Support 1, 2 & 3: 6638, 6612, 6574; Resistance 1, 2 & 3: 6702, 6740, 6767
A 4-day Head & Shoulders top pattern it was and with the weight of more Fed taper talk we could indeed go as far as mid-Nov lows of 6610 should current support at 6640 gives way. As we said yesterday, if 6610 holds it could provide a more solid platform for a resumption of the longer-term uptrend. This is backed up by the daily chart showing momentum almost regaining breakeven. A hint of recovery?
All the talk of negative Fed deposit rates, lower unemployment thresholds and distinguishing between tapering and rate rises may in fact be designed to reinforce easy monetary policy stance, to make us think they are gearing up for tapering and looking at options to offset the market impact, but actually just managing expectations to avoid bubbles. US bourses off their tops again – job done. Expect the muddied messages to keep flowing.
Markets are depressed by the prospect of tapering sooner, but we still see it unlikely (need lots more good data; impact on financial conditions) until Q2 when Yellen has been in place as Chair for a few meetings ((no leaving present for Bernanke in fancy wrapping ‘taper’). China and French PMIs not helping. After Germany fared better, the Eurozone print before 9am could be interesting.
The 6700 level regains importance where falling highs intersect. Watch levels 6640 and 6610 support and 6700 resistance.
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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