Daily head and shoulders forming - expecting a rally to 6950 to form the right shoulder.
Short 6950 Stop (Over Head) 7135 Target 6200
TECHNICAL: - Head and Shoulders (LS and Head formed) - Rising Neckline - Expecting a rally to 6950 in line with (LS) - A rally to 6950 would also coincide with a 61.80% retracement of the Nov 4th low. - Anticipate the 20MA moving under the 50MA
FUNDAMENTAL: - Brexit x2, Brexit x5, Brexit x10, Brexit x50, Brexit x100, Brexit +++ - D. Trump - Looking out for future data releases on the Economic Calendar to signal general weakness - UK GDP, Retail Sales and Manufacturing are of particular interest
I am anticipating a long term sell-off in UKX based on the above information.
Near term target 6700 (Neckline) However it is quite possible BOE could step in and loosen Monetary Policy further (cut rates/ quant. e) which would give UK stocks another boost. So it will be important to gauge the economic and fiscal picture.
Trade active
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Filled at 6951 again paying close attention to economic data and BOE
Trade closed: target reached
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Closed trade at 6719.9
I traded 0.01 Volume - in future I will trade at least double size so that I can take a partial and leave the rest to run over the weekend.