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: 6546; Support 1, 2 & 3: 6516, 6458, 6428, ; Resistance 1, 2 & 3: 6604, 6634, 6692
A bounce from 5-month rising support and we’re back above 6,550, and thanks to a strong US jobs report. So good news is good news again? Well, either markets are sceptical of tapering being just round the corner or they are finally believing they can live with reduced Fed monthly asset purchases, interpreting tapering as a sign of economic progress rather than a monetary hindrance.
Daily momentum still not positive and has further to fall before finding multiple support. The breached index level of 6620 also remains to be bettered, along with the strong trendline of falling highs from end-October, meaning we remain in the middle of what is now a 6-week corrective channel. The failure to beat 6580 is a concern this morning, suggesting uncertainty returned for another week.
Much ground to make up in terms of any bullish recovery and many wonder if Santa will deliver any festive cheer for the UK flagship this year while US peers do comparatively better. Being back above 200-day MA at 6615 is a plus, but while a bounce is nice the November downtrend remains the elephant in the room.
Watch levels: Overnight resistance at 6580 and round number 6500 support.
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