This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
The UK 100 remains near the top of its post-Christmas 6900-7300 rising channel range. That said, we are also in a shorter-term down channel towards 7100, consolidating the 11% rebound from December lows.
If we do fall back to around 7100 (-2.2% from highs), fear not. This merely opens the door for a rebound off converging support (intersecting from October; current channel floor) which could help the index bounce back to recent highs. Perhaps even beyond.
Bulls need a break above today’s 7220 highs for an upside escape from the current down-channel. Bears require a breach of 7125 to exit the current channel early, and below 7100 to break multi-month intersecting support.
Our watch levels: Bullish 7220, Bearish 7130
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.
Prepared by Michael van Dulken, Head of ResearchComments are closed.