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The UK 100 remains in a short-term falling channel, closer to the bottom than the top of a longer-term post-Christmas 6975-7350 rising channel.
This week’s 7040 low equates to a 3% pullback from recent 7260 highs, consolidating the 11% rise from December’s 2018 lows of 6600. However, it has yet to revisit the channel floor at 7000, meaning another 100pt down-leg could be necessary before a genuine bounce to reignite the 2-month uptrend.
Bulls need a break above today’s highs of 7135 to overcome 2-week falling highs. Bears require a breach of today’s 7095 lows to kick off another down-leg towards multi-month rising support at 7000.
Our watch levels: Bullish 7135, Bearish 7095
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Prepared by Michael van Dulken, Head of ResearchComments are closed.