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Major Support & Resistance (pivot points – explained):
Pivot: 6584; Support: 6536, 6485, 6437; Resistance: 6635, 6683, 6734
A positive start to the new week, but I still can’t ignore the signs of waning momentum from last week. The failure to get above 6660 in July, and the subsequent run of lower highs since has put the sideways consolidation into question and opens up the possibility of a correction.
Having spent weeks moving around 6600 (6535-6660), to suggest we might revisit 6480 sounds like a big drop, but it is still not even 3% from recent highs and must be taken in context with the prior 11% rally, and would provide a better platform for a resumption of the longer term uptrend.
Watch the 6600 level again today as failure to make ground above (already the case this morning) adds to the falling highs and potential for a retrace to recent lows 6535 and possibly even lower. 6600 served as support early last week. Could it have reverted to resistance as we move into August?
Lots of data this week on manufacturing (China and Europe) as well as US jobs data and GDP and the trio of major central banks (BoE, ECB, Fed) being eyed for hints on policy. UK banks (BARC, LLO, RBS) also reporting which tends to give rise to volatility in their shares and with a knock-on to the wider market.
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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