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Major Support & Resistance (pivot points – explained):
Pivot Point: 6659; Support 1, 2 & 3: 6636, 6614, 6591; Resistance 1, 2 & 3: 6682, 6704, 6727
The index’s pause around 6685 prior highs yesterday, ahead of the ECB policy decision went as far as to test 6635 prior day lows, producing a short-term sideways channel. While US indices failed to make progress by the close (there were more intraday highs), European bourses are positive this morning in a cautious run-up to the next big macro event – the US jobs report which is seen showing the most progress in 4 months as the impact of winter weather ends. With an absence of major data in the interim, 6685 could well remain resistance until this afternoon.
A break above 6685, keeping the 2-week rally alive, would likely open up the possibility of a move to 6700 and possibly 6750, and then even towards the end-Feb highs of 6875 which have held the index back since last May. We still like the fact that falling highs from Feb have been exceeded. The sideways channel on the week graph could also be a platform for a breakout, but we are wary of the 1-month graph showing a rising wedge which could break to the downside on any data disappointment.
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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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