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The UK 100 is flat today in a rather muted session as traders digest the overall impact of a host of geopolitical events, including revival of US-China trade tensions (this time from China, saying they agreed to nothing), aggressive NK rhetoric (will June summit happen?) and President Trump taking a “national security” swipe at auto equipment makers. Markets are taking a pause after yesterday’s continued backtrack from highs. Is that it, or is there further correction due?
Contributors: UK Index flat, in a perfectly balanced tug of war struggle where positive contributions of BATS/DGE/RB (defensives, Treasuries below 3%), RIO (copper up on weak USD), ITRK (results), CRH (rebound) are competing with negative pressure from Energy (oil off highs, OPEC/Russia to reassess production cuts?), GLEN (stronger GBP), VOD/BT (profit taking after bounce), IMB (ex-div), MDC (results).
Technicals: The UK 100 has fallen out of its 8-week rising channel, but it is holding above rising support (circa 7775) that goes back to mid-May.
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The UK 100 has fallen out of its 8-week rising channel, but it is holding above rising support (circa 7775) that goes back to mid May.
Watch levels: Bullish 7830, Bearish 7760.
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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