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Major Support & Resistance (pivot points – explained):
Pivot: 6539; Support: 6517, 6484, 6462; Resistance: 6572, 6594, 6628
It’s positive that the index bounced, thanks to miners benefiting from Chinese data (same again today), insurer Aviva putting in a standout performance after H1 results and the high-beta banks adding their bullish tuppence on generally improved risk appetite.
Until we break above 6560, however, and even then we still need to clear the falling highs from early on the month, this remains a bull trap. Watch for whether rising lows around 6525 hold. If not, and there’s a revisit of 6480, it could mean more downside to be had (6470? 6400?), although the 100-day moving average at 6480 could help out again. If we do break higher though, 6660 should be feasible before a pause and a an eventual retake of 6700 as the uptrend resumes.
China data still being dissected with many claiming not as good as at first glance. Fed tapering may still be on the cards, although there’s a very theory out there that slower Mortgage Backed Security (MBS) issuance due to less refinancing activity may lead to the Fed to actually increase stimulus relatively even as it scales back in absolute terms. If this is the case or, as we believe, tapering will not be for a few months yet, are market jitters much ado about nothing?
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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