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Major Support & Resistance (pivot points – explained):
Pivot: 6591; Support: 6555, 6503, 6467; Resistance: 6644, 6680, 6733
Yesterday’s early morning failure to break above the 6630 high of late Wednesday, combined with the drop back to 17-Jul lows of 6540 and this morning’s subsequent failure to get back above 6630 suggest a loss of momentum for the UK flagship index. We’re back trading around 6600 and, as alluded to yesterday, the consolidation phase may have run its course. Nonetheless, a correction could still be healthy before a resumption of the rally from end-Jun.
Evidence of momentum loss in abundance yesterday with positive macro data (German IFO, Italian confidence, Spanish unemployment, UK GDP) failing to offset China slowdown fears (China macro data and Q2 industrial earnings reports) and mixed earnings reports to provide equity support, compounded overnight by a drop in Chinese Business sentiment and a results miss by on-line retail giant Amazon. Even the WSJ suggesting no QE3 change by Fed next week not provided the normal ‘taper-off’ boost we are accustomed to.
New break watch levels are >6630 and <6540. Macro data drivers lacking as we move into the mid-summer weekend.
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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