GeorgeZii

Are UK equities in danger?

Short
OANDA:UK100GBP   UK 100
First things first, let's set the scenery with some backnotes:
- US equities are a ticking bomb as well
- Bitcoin is stuck in a tight range and looks for the driver to lead the next move
- Inflation keeps rising in the US while rumors for deflation are growing as people believe that 2008 is going to repeat again
- USD Index is in a global uptrend

Since we have the background, we can go into the technicals of the major UK index.

United Kingdom has yet to recover from the 2020 crash which makes it so suspicious that dark clouds are being gathered above the City. However, even if the index could just accumulate some momentum and make new 2021 highs, the timing is the worst now, as the US indices are already rocketed massively. As that said, it is really likely that a rush above the supply area would be the poisonous apple that would trigger the waterfall effect afterwards.

With the nearest floor being solid at 5400 - 5800 area, UK100 has surely a lot of room to fall before it can actually find some reliable support from the bulls.

Time will show what's next but one thing is for sure; dark clouds are being gathered and any bullish move would be psuedo-euphoric.

Take care!