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Here is a summary of Zak’s views.
FTSE 100: Although almost all professional traders have been calling the index to crash from the start of the year – and before – so far the housing bubble led rally keeps on building. The 10 day moving average, now at 6,832, keeps on dragging leading stocks higher. The 20 day moving average at 6,769 is the stop loss on the buy argument and we have a top of 2013 price channel target of at least 6,950 even if the “crash” arrives after that.
Gold: No soaring price action to the upside yet. But we have decent consolidation at current levels near the 200 day moving average. The buy trigger is still seen as an end of day close back above the 50 day moving average, now at $1,307, even after the recent bull trap through this feature.
BP (BP.): Elephants are not supposed to gallop, but we do have the oil giant near the top of its range and with 10p – 15p notional upside to take the shares to the top of a rising trend channel from last year. The question is whether the heavyweight FTSE 100 component will be enough to take the UK index through 7,000.
Lloyds Banking (LLOY): Quite a degree of volatility for the Black Horse bank’s shares either side of the 200 day moving average now at 77.47p. The charting point of interest is the way the floor of last year’s rising trend channel gives us a 72p entry level, while the still rising 200 day line should drag the stock higher / provide upward momentum over the next few weeks.
Royal Mail (RMG): One would imagine that the post April shakeout for the shares below key post November neckline support at 550p would have panicked all but the most ardent fans of this company. However, the May bear trap rebound back above 550p flips us back on the long tack, especially while there is no end of day close back below the latest gap floor at 560p. The upside is seen as a return to the best levels through 610p.
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