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The UK 100 trades fresh record highs into the new week, extending its recent uptrend channel to an impressive eight weeks. The latest leg comes courtesy of a calming in US-China trade war rhetoric, which merely adds to the general positive momentum of late. Driving it higher are heavyweights, themselves benefiting from a recipe of positive drug news, refinancing, share buybacks, Asian exposure, high oil prices and a weak GBP.
Contributors: UK Index +67pts, driven north mostly by AZN (drug approval), HSBC (bond sale, share buyback, Asia exposure), RDSB/BP (high oil, weak GBP, breakout momentum), DGE/ULVR (weak GBP), VOD (bounce), Miners (weak GBP, metals off lows despite stronger USD) and Banks (risk appetite). Offering extremely limited resistance are EVR (Russia sanctions, owner Abramovich’s UK visa woes), BATS (downtrend) and RB (profit taking).
Technicals: The UK 100 remains in a 8-week rising channel toward 4.5ry rising resistance at 7890
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The UK 100 remains in a 8-week rising channel toward 4.5ry rising resistance at 7890.
Watch levels: Bullish 7850 (today’s record high), Bearish 7820 (2-day rising 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.
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