Chart of the day

Where do we stand fundamentally?

Recent data suggests that the UK economy showed no growth in July, disappointing expectations of a 0.2% increase. This stagnation has heightened concerns of a potential downturn, despite hopes for a mild economic slowdown rather than a recession​

FTSE is testing the strong upside resistance 8330. This indicates a strong upside continuation in the fifth wave to target 8700 in the medium to long term. Invalidation of this immediate upside extension could come upon a break below 8150.

An invalidation level of a fifth-wave long-term extension higher and a bullish cycle is 7880. As said this extension higher could lead to an 8700 target in the medium-term to long-term if the Index breaks above 8330. Reversal however is possible and a new swing-down retrace to 7880 if we see a break below 8150.

_{Try a long trade entry with a narrow stop loss below 8250 upon a break above 8370 to target 8500 and higher.}