On the morning of Friday, December 1, the UK stock market index rose to its November highs. This was facilitated by the fundamental background:
→ among the UK100 growth leaders are shares of companies mining ore and other resources. As metal prices rise and industry in China shows signs of recovery;
→ general sentiment on the world's stock markets due to the fact that the policy of raising rates pursued by the central banks of Western countries has come to an end. Fed Chairman Powell is expected to speak this evening, which could provide more evidence of this.
→ Since the UK100 index has performed weaker relative to other indices (due to higher inflation in the UK), it may be undervalued.
The UK100 Index chart shows signs of bullish activity:
→ on the last day of November, the price tested the psychological level of 7400, forming a long lower shadow (a sign of demand strength);
→ the price continues to develop dynamics within the November ascending channel (shown in blue). It is possible that in December we will see the price rise to its upper limit.
→ a breakdown of the black line, dating back to September, may confirm important changes in market sentiment.
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