UK100 At a Halt

UK100 Index seems to be exhausted since the latest rally and it looks like it's now taking a breather. Within the chart you are able to see that price has been retracing after reaching the 7600 area, which has lead price down to the 61.8% Fibonacci retracement level.

Price at this level ranged and went into a box range which today we have seen price show a break of, to the upside. A long position within this market could turn out to be early as of now, as we need to see further continuation above the counter trend line. If we see price show a break retest of the counter trendline then we will look to see if the risk to reward is good enough to take a long position up to the 0% Fibonacci resistance. On the other hand if the risk to reward is not good enough then a further break of the 0% area with a retest will warrant a long position. This is definitely a market which should be observed.

Chart: UK100 Index