- 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.
- 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