UK showing strong upside once breaks above C&H to 9,772

3 Jul

A very large Cup and Handle has formed on UK100.

There are many reasons for the upside to come but here are a few ones I can think of.

📉 2. Undervalued vs. Other Indices
FTSE 100 has lagged behind the US and EU — now global investors are eyeing it as a catch-up play.

💷 3. Weak Pound Helps Export Giants
A softer GBP = stronger revenue for big FTSE names like Shell, BP, Unilever, etc., which dominate global markets.

🏦 4. Rate Cut Hopes Are Back
With UK inflation cooling, the Bank of England might ease up — which is fuel for stocks, especially banks and housing.

📈 5. Rotational Flows Into Value
Traders are rotating out of overbought tech and into solid dividend/value plays — and the FTSE is packed with them.

And this is looking great for upside.

We can expect upside to come ONCE the price breaks above the brim level.

Price>20 and 200MA.

9,772

Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.

6 hari lalu

Dagangan ditutup: sasaran tercapai

FTSE 100 Analysis – Target Reached, Bulls Dominating 🇬🇧🚀

The large Cup and Handle formation has completed perfectly, with price surging to the 9,721 target. The market stayed consistently above both the 20-day and 200-day moving averages, confirming a powerful uptrend and strong institutional buying momentum.

Fundamental factors supporting the rally:

🇬🇧 Resilient UK economy: Better-than-expected GDP and service sector data lifted market sentiment.

🏦 Bank of England’s steady tone: A pause in rate hikes encouraged equity inflows.

💼 Strong corporate earnings: Energy, mining, and banking stocks driving the FTSE higher.

🌍 Global optimism: Improved risk appetite and falling bond yields fueling equity strength.

Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.