LSEG looking leggy - SELL

4 Jun 2022

REASONS TO BE BEARISH

• Recently lost the 100 week SMA and just re-tested it for resistance
  
• Fell out of the exponential green top zone in March 2021
  
• As far as the RSI is concerned, broke into the bear zone (below 40) and confirmed it for resistance failing to reclaim 60s
  
• Target of 2,700p would coincide with the 0.618 fib retrace of the entire move from March 2009
  
• This would take us back to Jan 2017 levels
  
• Only saviour for the bulls would be to reclaim the 100 week SMA, given we are still in the upper-half of the exponential channel
  
• That said, with only air below, I don't see the mid-point of the channel (at 6,400p) holding in the months ahead...
  
• Not a terrible risk/reward entry for a short from these highs....