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 this week’s rebound, +2.7% from a revisit of March lows, shifting from a 2-week end-May falling channel into a fresh rising channel to make for a positive start to the new month and quarter.
This is in spite of Trade tensions having ratcheted up a notch, President Trump now threatening his Mexican neighbours with tariffs on all goods unless the border is made more secure. He has also threatened China with yet higher tariffs in an effort to get Beijing to cede ground towards long-running trade negotiations with Washington.
Does this week’s 2.7% rally from the revisit of March lows have potential to make it all the way to 7379 May highs, another 1.5% upside? Does the current up-channel have legs? Will investors close the week risk-on, risk-off or undecided?
Bulls need a break above 7275 highs to extend the channel towards 7379 (1.5% upside).
Bears require a breach of 7230 to exit the channel and open the door for a retrace towards 7100 (2.2% downside).
Our watch levels: Bullish 7300, Bearish 7255
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.