INSIGHTS

Steve Miley

Tue, Jun 25


UK/European Equity Deeper Correction Risks while FTSE100 Risks Stay Lower

UK and European equity markets deeper correction risks

UK and European equity indices have been correcting lower since the end of last week.

This is reflecting:
*June rallies suffering bullish fatigue
*Significant resistance barriers above the rallies in GBPUSD and particularly the Euro (EURUSD

Although the intermediate-term prospects for the major averages remains higher, the near-term bias is for further corrections lower.


Here we focus on the UK equity benchmark index, the FTSE 100.

You can take a more in-depth look at the pan-European benchmark average, the EURO STOXX 50 here and see further analysis on the news and education site FXExplained.co.uk

 

FTSE 100 risks stay lower

A Tuesday recovery failure Monday from just above our 7366 resistance (from 7366.5) after Friday’s selloff to just below 7319.5 support, to keep risks lower for Wednesday.  The June push above 7289.5 set an intermediate-term range we see as 7403 to 6998, BUT with risks growing for an intermediate-term bullish shift above 7474.

 

For Today:

*We see a downside bias for 7301; break here aims for 7274, maybe 7245.5, which we would look to try to hold.

*But above 7366.5 opens risk up to key 7403.

 

Intermediate-term Range Breakout Parameters: Range seen as 7403 to 6998.

*Upside Risks: Above 7403 sets an intermediate-term bull trend to aim for 7500, 7558.5 and 7625.5.

*Downside Risks: Below 6998 sees an intermediate-term bear trend


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