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The UK 100 has extended its post-Christmas rally from 6600 to touch 7250 today. That’s 11%, of which 2.5% today, and showing interest in making a bullish break from that rising channel. If it does, there is potential to power on towards September highs of 7555, which would represent another 4.2% rise.
Looking at the biggest contributors of this week’s 176pt advance, a third can be pinned on AstraZeneca (26pts), thanks to positively received results, HSBC (20pts) has continued its February rally, and British American Tobacco (14pts) is is still rallying from January lows. In fact, amid a general market advance, no constituent has deprived the index of more than 2pts this week.
Bulls need a break above 7300 to increase the chances of a meaningful escape from the confines of the recent rising channel. Bears, on the other hand, require a breach of 7180 to endanger February’s trend of rising lows support.
Our watch levels: Bullish 7300, Bearish 7180
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Prepared by Michael van Dulken, Head of ResearchComments are closed.