FTSE Pauses At Resistance; CWK, CTEC, IMB

The FTSE 100 continues to ricochet between key levels, yet lacks the compelling trend structure required to easily decipher if it will break higher or roll over once more. Sure, it’s seen a nice bounce from the 7,000 lows yet it has taken 8 sessions to recoup half the losses sustained over just two. Therefor, we’d lean towards FTSE topping out although with sentiment supportive of equity markets, not confident enough to say the high is in place. Still, given its rebound remains minor compared with its peers, it could just take for the trade boost sentiment to waver and perhaps we’ll have a better reason to call a top. For now, prices have found resistance around the 50 and 200-day eMA’s and monthly S1 (an area which might temp some bears to fade into), so we’ll continue to monitor for a potential high.

Below are some FTSE stocks which warrant a closer look, along with an update of price action of previously highlighted FTSE stocks.

Cranswick Plc (CWK.L): Friday’s range expansion saw Cranswick break out of a 1-year basing pattern (rounding bottom). Volume on Friday was above it 20-day average to suggest the breakout carries some weight, and we like how a strong bullish structure has developed since the August low. The 10 and 20-day eMA’s are also acting as dynamic support and pointing higher.

  • The daily trend remains bullish above 2,194, although we’d like to see prices hold above the breakout level around 3,116 to keep the rounding bottom target
  • If successful, the basing pattern projects an approximate target just below 3,800. Although resistance around 3,500 makes a viable interim target.
  • A break below 2,914 invalidates the bullish structure on the daily chart.

Convatec Group (CTEC.L)(CNVVY): It’s certainly not a top performer this year, but things may be starting to pick up for a technically bullish case. Since gapping higher in August, Prices consolidated and pulled back from the July 2018 before finding support at the 50-day eMA. Bullish momentum is now returning and appears set to have a crack at breaking to new highs.

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