Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
Technical Analyst, Saxo Bank
FTSE 250 has broken bullish out of its falling channel. The Mid-cap Index needs to close above resistance at around 17,822 for further upside to next resistance at around 18,494. If FTSE 250 is failing to do just that the bear trend could resume.
A close below 16,520 could spark a sell-off down to 16K possibly lower. 15,194 would be next strong support. RSI showing divergence but still in negative sentiment it is crucial to look at the trendlines. If RSI on daily breaks below its lower rising trendline followed by a close below 40, and the Index breaks below 17,033, the bearish trend has resumed, and new low should be expected.
The down trend is stretched however, indicated by divergence on both daily and weekly time period. Bottom line market seems to in a limbo at the moment.