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The UK 100 is alive and she is kicking! after several weeks of pullback since its 2019 highs, the index managed to bounce off a 7129 support and reach right up to the floor of the previous multi-month range that we have seen so much of this year.
Is this 3.2% bounce off the support the beginning of a larger uptrend? Is it merely just a small move up before another sell-off will resume?
Bulls need a break above 7372 (this week’s highs) to break back into the larger range and potentially run for its ceiling. A break above 7400 would consolidate the index rejoining an upward range move.
Bears, on the other hand, require a move under 7305 (recent lows) to potentially make this week’s move as only a small uptrend within a larger sell off. After that level, any move down to this month’s previous 7129 support will open the way for new multi-month lows.
Our watch levels: Bullish 7372, Bearish 7305
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