1-hr UK100: Upward Momentum Detected

9 dic

The 100 point correction in UK100 seems to be over now, with the value rising with 50 points since Friday so far. The FTSE is lagging behind its EU and US peers and makes it very likely that we will see further growth in this index as well. The Death Cross, a classic sell signal, didn't materialize and we currently see strong momentum in the opposite direction. Last week's low at 8 290 attracted buyers, as the RSI was nearly oversold back then and we see this upward move extending further north into today as well. UK100 broke above the critical 61.8% Fib earlier today and this has served as a historic indication of momentum reversal. If the value holds above 8 320, which aligns with the important 38% Fib, it is very likely that it will find support at that level and retesting previous highs seems logical. We would prefer if the UK100 reached 8 390, where a Double Top would form. If this reversal pattern doesn't truly precede a drop, 8 450 might be the next top to retest.