And there we have it! Following on from the previous update, the (25x3) FTSE 100 chart now shows that the box of 5,225 did close, giving a confirmed double top buy signal and an activated upside price objective of 5,700. That gives about 6% upside from current levels and given that BP's shares could put in some sort of rally following yesterday's dividend suspension, that target could be met quite easily. Still lots of headwinds (and is a 6% gain worth the risk) but this is the new upside target.
Should the index move back up towards the previous high, we could see some sort of double top formation similar to that seen in the summer of 2007. At a fundamental level, the question remains what catalysts are going to push these equity indices up to new multi year highs?
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