This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
The UK 100 is holding above 7130 twin support (horizontal, shallow rising) but remains in a falling channel from 7373 highs. Drivers of the decline since mid-month are US-China trade dispute (and now US-Mexico) and increased appetite for bonds rather than equities.
After a 3% sell-off, however, has the correction run its course? Are we primed for a bounce? Could the combination of a new week and month bring us good news next week? Or are we set to keep trending lower?
Bulls need a break above 7230 to escape said channel and boost confidence in a return to towards 7373 (3% upside).
Bears require a breach of 7130 to extend the current down-channel towards a a revisit of 7000 (2.4% downside).
Our watch levels: Bullish 7300, Bearish 7255
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Prepared by Michael van Dulken, Head of ResearchComments are closed.