This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
After a flirt with 2018 lows, the UK Index rebounded by almost 350pts/5%, and, more importantly, regained the channel from which it fell at the beginning of the month.
We may have back-peddled from today’s 7195 recovery highs, but the Bulls are still motivated by the strength of the rebound and the prospect of revisiting the old channel ceiling at 7400; 4% upside from here.
Sceptical bulls, on the other hand, point to the long tails on this week’s candlesticks, highlighting indecision at the lows and inability to hold/better the highs, implying potential for a retrace of the current rebound to revisit recent lows; 3.8% downside.
Our watch levels: Bullish 7150, Bearish 7100
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Prepared by Michael van Dulken, Head of ResearchComments are closed.