Since the beginning of the year the main UK index gained almost 5.5% but last week rallied practically 2.0% and made a phase change, shifting from a warning to a bullish phase.
Last week the main UK index rallied with a wide range plus closed near the high of the week, in addition managed to close above the previous week high, which suggests a strong bullish momentum.
The stochastic is showing a strong bullish momentum and crossed above the 50 mid line.
The Index continues to trade within a congestion zone between a weekly resistance at 7,506.5 down to a key level at 7,287.5
Expecting an upward move to 2017 high at 7,588.0 (scenario 1) on a break above the previous week high at 7,488.0 although a bounce from 2017 high at 7,506.5 may trigger a selloff down to a key level at 7,287.5 (scenario 2).