Reverse head & shoulder formation in UK100 remains at forefront
Our long term bias in UK100 remains positive and this week has got off to a good start with a very solid move higher.
Last week we noted a morning star formation to target a move higher and this has played out nicely.
With BOE hinting at further rate cuts and the continued quantitive easing strategy supporting the long side, further upside is expected.
We look to set longs at current levels to target a move towards 7002 (161.8% fib extension), previous swing high at 7100 and the reverse head & shoulder measured move target of 7340.
Risk to this trade is a break of 6600.
Last week we noted a morning star formation to target a move higher and this has played out nicely.
With BOE hinting at further rate cuts and the continued quantitive easing strategy supporting the long side, further upside is expected.
We look to set longs at current levels to target a move towards 7002 (161.8% fib extension), previous swing high at 7100 and the reverse head & shoulder measured move target of 7340.
Risk to this trade is a break of 6600.
Comment:
Prices have reached 1st target this morning
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