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 Point: 6648; Support 1, 2 & 3: 6618, 6586, 6555; Resistance 1, 2 & 3: 6681, 6711, 6743
It’s a good sign to see the index testing the September high. Where conflict arises is the 3-month graph showing a break back above the intersecting trendline from end-June, but the long-term graph showing said trendline still in play as resistance (3-month graph too short, not showing the actual June low).
The tests of the last 24 hours of 6665-6680 still suggests potential/appetite for a visit to the August high 6715 which would in turn open up the possibility of a run to the May high 6875. Nonetheless, while we tread water around 6665, waiting for US NFP, we acknowledge that this level needs to exceeded decisively.
We’re sceptical as to the usefulness of September US jobs data (bad number reinforces taper delay; ok/great number likely offset by October shutdown mess so have to wait) so while markets get excited about their favourite monthly data print, we expect the outcome to keep markets optimistic thanks to an accommodative Fed. The risk, however, is that this has already been priced in with the rally from early October based on a shutdown forcing the Fed to stick.
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