This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Having recovered some of last week’s sharp losses, the UK Index is back trading within a 5-month falling channel. Can it extend its rebound to revist the channel ceiling around 7350?
Although still 100 points away from November highs, the index is firmly out of sell-off territory, as the Bulls provided enough optimism to regain the channel’s mid-point with a 7172 weekly high.
Some scepticism still persists in the markets (look at oil prices in Bear market territory), with the Bears looking for another breakdown below falling channel’s floor around 7000.
Our watch levels: Bullish 7125 (overnight highs), Bearish 7075 (today’s lows)
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 Research