London Stock Exchange (LSE)

A 2300% gain and following overbought condition (green column) there now exists a 16 month bearish divergence between price action & RSI on the above 10-day chart. Time to collect profits. Sell out between current price action until 10.5k, no rush.

Target price? For as long as the RSI resistance exists price action will likely fall through and until 2023.

1st target 4400

2nd target 2000

Fundamentally as a business LSE provides a variety of financial services. Many of them to EU located individuals and businesses. Since the UK left the EU much of that trading business has and/or will continue to move to another EU country. As the UK opted for self inflicted economic sanctions (a world first?), charts are now showing a number of EU owned UK based businesses with similar divergences. Most notable within Financial services and Engineering businesses.

Trade active

Comment:

"Amsterdam ousts London as Europe’s top share trading hub"

"Amsterdam surpassed London as Europe’s largest share trading centre last month as the Netherlands scooped up business lost by the UK since Brexit.

An average €9.2bn shares a day were traded on Euronext Amsterdam and the Dutch arms of CBOE Europe and Turquoise in January, a more than fourfold increase from December. The surge came as volumes in London fell sharply to €8.6bn, dislodging the UK from its historic position as the main hub for the European market, according to data from CBOE Europe"

www.ft.com/content/3...7e-8f63-f629a5b7d0aa

Trade active:

Woah - 😮

Absolute slaughter last week. Looks set to continue into this week.

Trade active:

*** price action breaks down 100-week EMA (red line) ***

December 2011 - that was the last time price action broke this level. However price action was oversold higher lows. Looking left, March 2008 price action was overbought and printing lower highs, just as is happening today.

If what followed in March 2008 is about to occur by March 2022, the index will could very well see a sell off down to 2000.