Chart of the day

Where do we stand fundamentally?

The UK economy is proving resilience despite the higher costs of borrowing (interest rates). We are seeing services PMI and GDP improving in the last months and it is supporting FTSE.

FTSE is consolidating after reaching the high of 8500 in the fifth upside wave. If the ongoing 8100 support holds we could see an extension of the fifth upside wave and an extension higher.

Support for an upside extension and a test of 8500 again is as said 8100 and an invalidation level of a fifth wave extension higher is 7700. Only a confirmed break above 8500 after the bounce from 8100 is required for a continuation higher.

_{Go with a long trade entry with a stop loss below 8130.}