25th Aug 2020. 2.32pm
UK Sector Snapshot
The two-day two-hundred-point upswing that we’ve just witnessed in the FTSE, is a reflection of a broad uptick in risk appetite.
Whilst this should be seen as a positive for risky equities, it leaves the game of sector strength and weakness somewhat in limbo.
The strong sectors of Metals & Mining and Housebuilding & Construction are consolidating their recent gains, while weaker sectors like Banking and Oil & Gas are bouncing from their lows, the latter forming the early signs of a ‘double bottom’ reversal pattern.
In the absence of short-term sector momentum, we will continue to drill down to the stock level to hunt for the highest probability setups.
This research is prepared for general information only and should not be construed as any form of investment advice.