For the past 1 month, the UK100 saw a fantastic 600 point rally! The occasional corrections only attracted more buyers, which is healthy for the current up trend and the RSI currently exhibits elevated demand. A 130 point correction started last week on Friday, dipped below the 23% Fibonacci retracement, but held above the 38% Fib level, a critical support zone. Since then, we see a continuation of the bullish momentum, also confirmed by an earlier Golden Cross. Currently, the FTSE100 is sitting at a Multiple Top chart pattern. Historically, the more a resistance gets tested, the thinner it becomes and it eventually fails. The broader risk on sentiment also supports the hypothesis of further growth in the international equity markets. Should the UK100 break above the current multiple top it formed, we will target another 80 points to the upside.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.