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Major Support & Resistance (pivot points – explained):
Pivot Point: 6844; Support 1, 2 & 3: 6824, 6800, 6680; Resistance 1, 2 & 3: 6867, 6888, 6912
While we might have given up some ground from 6840 thanks to a disappointing China PMI Manufacturing reading, the good news is that 1-week lows of 6805 have held up and we have gone positive after a negative open and we are seeing resilience among the exposed miners.
This suggests less fear of a slowing China and faith in the IMF’s recent upgrades. However, it may also signal belief in another mini-stimulus package from Beijing to keep the train chugging, even if today’s data suggests the benefits from the last batch may already be fading. It could also be that markets are waiting to see whether the official PMI Manufacturing figure (possibly more ‘massaged’; due 1 Feb) confirms the contraction.
With 6840 having been a key level for the last few days we are watching to see whether it proves resistance this morning. Thereafter we need to beat overnight highs of 6850 and then the group of peaks around 6865. Daily momentum still pointing north but 3-month hourly RSI dropped back to near 13 Jan lows. Will it go all the way to oversold? Need the index correct further?
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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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