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The UK 100 remains in a sideways channel (slight downside bias), continuing to correct from recent 7260 highs, back towards the floor of the post-Christmas 7020-7400 rising channel.
So it could be that we extend the bounce from today’s lows, back towards 7200. On the flipside, it could be that we need to correct further, all the way back to the 7000 floor.
Whichever it is, the long-term uptrend remains intact. We’re look to be merely continuing to digest (perfectly healthy) the 11% rebound from December’s 2.5yr low.
In fact, it’s not dissimilar to what happened in early Jan, when we traded 6800-7000 for a week or two. This time its three weeks, but we had got a lot higher this time.
Bulls need a break above 7140 to extend this afternoon’s rebound and revive the uptrend towards 7400. Bears require a breach of today’s 7080 lows, if we are to pull back all the way to the long term rising support at 7030.
Our watch levels: Bullish 7140, Bearish 7080
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Prepared by Michael van Dulken, Head of ResearchComments are closed.