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The UK 100 , albeit higher for the day, looks set to close the week in the red, having given up most of its overnight bounce, to confirm a 3-day falling channel. Drivers include oil off its 3.5yr highs (OPEC/Russia to reverse production cuts?), hurting Energy names, while a stronger USD makes life hard for the Miners (both industrial metals and precious). Even a weak GBP is not helping after UK Q1 GDP confirmed weakest quarterly growth in 3 years and EU/UK Brexit talks became heated.
Contributors: UK Index +15pts, helped by HSBA/ULVR (buyback, rebound), BATS (weaker GBP, rebound), BT (interest in Openreach), AZN (drug news), RB (momentum), PRU/KGF/ABF (rebound), CPG (breakout). Pushing back on the index are RDSB/BP (oil off highs), AAL/BLT (continued profit taking), VOD (giving up its bounce), LLOY (continued pullback).
Technicals: The UK 100 is in a new 3-day falling channel
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The UK 100 is in a new 3-day falling channel
Watch levels: Bullish 7750, Bearish 7710.
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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