UK 100 (CBOE) (BUK100P.NDX)

Short term

UK 100 (CBOE) has broken the rising trend channel in the short term and reacted strongly down. For the time being, it is difficult to say anything about the future trend direction. There is no support in the price chart and further decline is indicated. In case of a positive reaction, the index has resistance at 812 points. RSI is below 30 after the falling prices of the past weeks. The index has strong negative momentum and further decline is indicated. However, particularly in big stocks, low RSI may be a sign that the stock is oversold and that there is a chance for a reaction upwards. The index is overall assessed as technically negative for the short term.

Recommendation one to six weeks: Negative

Medium term

UK 100 (CBOE) has broken the floor of the rising trend channel in the medium long term, which indicates a weaker initial rising rate. The index has broken a support level and given a negative signal for the long term trading range. The index is testing support at points 800. This could give a positive reaction, but a downward breakthrough of points 800 means a negative signal. RSI below 30 shows that the momentum of the index is strongly negative in the short term. Investor have steadily reduced the price to sell the index, which indicates increasing pessimism and continued falling prices. However, particularly in big stocks, low RSI may be a sign that the stock is oversold and that there is a chance for a reaction upwards. The index is overall assessed as technically slightly positive for the medium long term.

Recommendation one to six months: Weak Positive

Long term

UK 100 (CBOE) shows strong development within a rising trend channel in the long term. Rising trends indicate that the market experiences positive development and that buy interest among investors is increasing. The index has met the objective at 814 after a break of the rectangle formation. The price has now fallen, but the formation indicates further rise. There is no resistance in the price chart and further rise is indicated. In case of a negative reaction, the index has support at approximately 760 points. The index is overall assessed as technically positive for the long term.

Recommendation one to six quarters: Positive