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The UK 100 is just offside for the day at 7535, almost flat when adjusted for 5pts of ex-dividends. GBP off recent lows (helped by a less hawkish Fed statement pulling USD from highs) remains a hindrance. This in spite of a softer than expected rebound for UK PMI Services and political uncertainty (Brexit, local elections) still in plentiful supply.
Contributors: UK Index -10pts, dragged lower by ex-dividends (ULVR, MNDI, LSE, KGF, GFS), SN (profits warning), BT (BARC downgrade, long-term downtrend), VOD (BT read-across) and STAN (still digesting yesterday’s results). Offering buoyancy today is RDSb (oil price perked up, possible share price breakout), Miners (weaker USD helping metals) and LLOY (bounce off 5-month support).
Technicals: UK 100 well off overnight flirt with 7500, and broken out from yesterday’s brief corrective falling channel. However, it’s also back from a failed attempt to get back above 7550. Longer-term 6/7 week uptrend intact, support at 7480.
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The UK 100 well off overnight flirt with 7500, and broken out from yesterday’s brief corrective falling channel. However, it’s also back from a failed attempt to get back above 7550. Longer-term 6/7 week uptrend intact, support at 7480.
Watch levels: Bullish 7555 (o’night highs), Bearish 7550 (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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