UK - looks toppy

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Asian markets gapped down at the open because of the Ukrainian situation. Chinese PMI came as expected, and I don't know if this is good or bad, remains to be seen how it will be percieved by investors.

Looking at a chart of the British stock market , I see weakness. At first glance, looks like a consolidation at a very very strong resistance area , the previous all time high. But if you look closely, we have a huge divergence going on for quite some time. With every push up, bulls are loosing steam, look at thecircles on the histogram.

Previous all time high was roughly 6700. There were 3 failed attempts to cross over : First there was a shooting star , then ALMOST a gravestone doji and the third time it actually closed over but next week went immediately back, a sign of weakness. Currently, UK is over this level, but there is a hanging man candlestick , which I don't usually take into consideration, but because of the divergence and the strong resistance area between the 2008 high and the 2014 high I can't ignore it.

First good support is arround 6400-6500, but the what looks like a great support level is 6000, which is ex resistance, ex support, psychological level and a fibonacci cluster (fib levels labeled on chart).

The Ukrainian situation might be a fundamental push towards these two levels, and it remains to be seen how the chinese data is acknowledged by investors.

The market will probably gap down on the open.

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vlad.adrian PRO
3 years ago
worked perfectly!
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