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The UK’s UK 100 (and peer indices) had quite the week. A 475p sell-off (falling channel) was kicked off by scepticism about a 90-day truce in the US-China trade war, keeping alive the possibility of more tariffs and retaliation. Falling oil prices also continued to weigh on sentiment as we moved towards the semi-annual update from OPEC and allies which produced the desired production cut.
While we look set to close 155pts lower for the week, a 200pt bullish reversal from yesterday’s fresh 2yr low has developed into a new rising channel which bulls will be hoping has legs come Monday morning.
Bulls will be looking for a break above today’s highs to accelerate away from the channel towards recent highs. Bears require a break below the channel floor for another go at yesterday’s trough.
Our watch levels: Bullish 6865, Bearish 6780
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Prepared by Michael van Dulken, Head of ResearchComments are closed.