This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
This week the UK 100 extended its pullback from 2019 highs. It even broke below 7400 to abandon its post-Christmas rising channel. However, February rising support came the rescue at 7319 to stem the declines and keep the uptrend alive.
However, that breached 5-month trend-line has already served as resistance today. And falling highs are compounded 7415 as a new hurdle. So we may still be in a short-term falling channel, which needs another leg lower to retest February support before resuming the longer-term uptrend.
Bulls need to see 7415 overcome (exit short-term falling channel; break back above 5-month breached trend-line) before getting excited about seeing 7500 (or better). Bears may look to trade another down-leg towards 7330, hoping for aanother more meaningful breakdown.
Our watch levels: Bullish 7460, Bearish 7320
For even more on my UK Index observations, see what I else I wrote this afternoon.
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.