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Major Support & Resistance (pivot points – explained):
Pivot: 6600; Support: 6569, 6549, 6519; Resistance: 6620, 6650, 6671
A combination of thin summer volumes, mixed Q2 earnings reports, persistent uncertainty around the future of loose global monetary policy and desire for more convincing growth/recovery data keeping the index in a sideways holding pattern until things hot up in September with German elections and potential Fed tapering.
I would have said China and Fed would be the drivers of any break higher or lower, but Middle Eastern unrest has just been added to the mix, and Momentum on the index has dropped to near recent lows.
The momentum drop coincides with a breakdown from a bearish rising wedge pattern. Currently testing prior support around 6560. A break of this level, opens up the possibility of a fall back to summer lows of 6480.
Our long-term graph suggests rising lows from 3 July still intact, but only just and momentum still in decline (new 6-week low). Jul-Aug sideways consolidation still intact, keeping uptrend from June alive, although recent struggle at 6620 (lower highs) is something to keep an eye on.
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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