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Major Support & Resistance (pivot points – explained):
Pivot Point: 6654; Support 1, 2 & 3: 6512, 6429, 6287; Resistance 1, 2 & 3: 6736, 6879, 6961
Friday’s sell-off and capitulation on the bubbling over of concerns ranging from China/global growth recovery, emerging FX devaluation, the effects of QE3 tapering on emerging markets and political unrest has seen the UK flagship equity index retrace 5% from its 6865 highs to before finding support at the 6535 level of 15-19 Dec, undoing much but not all of the December rally from 6395.
Of note is the index finding support before 6500 which is where we find rising support from the crisis lows of Mar-09. With the fall back below 6600 since the open, does the index need to fall back there before resuming its uptrend? Secondly, we spy that he index found support around its 200-day moving average of 6556, although this has not proved too helpful for quite a while.
Daily momentum has found support at 6-month rising lows which could be a positive in terms of recovery, and the 3-month hourly Relative Strength Indicator (RSI) has recovered from its most extreme oversold albeit with falling highs. Note pivot points have widened significantly due to recent volatility.
With global growth fears, note earth moving equipment name Caterpillar reporting Q4 results which have potential to influence sentiment on China. Could this calm things or make ’em worse?
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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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