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The UK 100 is back trading the upper half of a 5-week bullish rising channel, having rebounded from recent 6750 lows to flirt with the psychologically significant 7000 level.
Sterling weakness due to ongoing Brexit uncertainty and stronger than expected US January jobs report are both helping nudge the blue-chip index higher. Today’s index helpers are a curious mix of resource stocks (oil & miners) and non-cyclical defensive names (tobacco, utilities, consumer staples), suggesting neither outright risk-on, nor risk-off among traders. Cautiously optimistic?
Bulls need a break above 7033 Oct-Dec falling highs to solidify their presense above 7000. Bears require a break below today’s 6970 lows for another leg back toward rising support toward 6800.
Our watch levels: Bullish 7020, Bearish 6970
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Prepared by Michael van Dulken, Head of ResearchComments are closed.