UK and European stocks on a firmer footing (FTSE 100 focus)

Intermediate
  • The European equity averages started to secure better bottoming patterns into the end of August, notably the DAX and EUROSTOXX 50.
  • The FTSE 100 has played catch up this week already, assisted by a weakening of the Pound
  • GBPUSD is notably lower in the wake of risks of a snap UK General Election.
  • The easing of US-Sino trade tensions is also helping global equity markets to stabilise and recover from early August losses.
  • Here we focus on the UK benchmark share index, the FTSE 100.

FTSE 100 intermediate-term bullish shift above key 7268.5

We have stressed in our recent reports to clients that “we see an intermediate-term range theme we see as 7268.5 to 6999, BUT with growing risks for an intermediate-term bullish shift above 7268.5” and the surge above here to start September sets an intermediate-term bull trend.

Furthermore, this keeps risks higher Tuesday.

For Today:

  • We see an upside bias for 7310/11; break here aims for 7336 and 7352, maybe 7384.
  • But below 7245 opens risk down to 7197.5.

Intermediate-term Outlook – Upside Risks: We see an upside risk for 7442.

  • Higher targets would be 7666 and 7800.
  • What Changes This? Below 6999 shifts the intermediate-term outlook straight to an intermediate-term bear theme.

Daily FTSE 100 Future Chart

ftse 100

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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