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The UK 100 has broken above 4-day 7715 resistance, close to challenging July 7740 highs, holding a 2-week rising channel. Gains come courtesy of BP results pushing heavyweight Energy to the top of the index while several Banks maintain positive momentum into Q2 results this week and, of course, a likely Bank of England interest rate rise on Thursday. GBP strength, normally a hindrance to international exposure, is failing to hamper bullishness.
Contributors: UK Index +20pts, driven by BP/RDSb (BP results beat, both bouncing off range floors), BATS (momentum) , HSBA (pref vs STAN), BARC/RBS (optimism ahead of Q2 results), GLEN (Q2 production) and IAG. Offering some resistance is RB (profit taking after results), STAN (results miss, profit-taking after rally), CNA (profits miss) and JE (ups revenue guidance, but not profits; ups investment spending).
Technicals: The UK 100 remains in a rising channel towards June highs.
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The UK 100 remains in a rising channel towards June highs.
Watch levels: Bullish 7740, Bearish 7715
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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Prepared by Michael van Dulken, Head of Research