UKX: a negative formation, suitable level for sell

UKX: index formed a negative formation “curtain of dark clouds” – in an uptrend, reversing candle opens with a gap and closes below the middle of the first one. This is “bearish” conversion.

Signal is negative, we can see the continuation of the decline in the index. The price is still above the 50 period moving average, a break below it will give a second negative signal to sell.

Support the index are very far away, which means that the decrease may be strong.

Indicators still do not give us negative impulses, but they lag behind the formations of Japanese candles.

Lowering the price of oil has a negative impact on the index, because mining and oil companies in the UK have a large weight in the index.

 Varchev Traders

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