UK Stock Market Technical Analysis and Stock Picks

UK stocks advanced on Thursday, although the FTSE 100 was marginally lower as China's central bank devalued its currency for a third day and as Greece's economy expanded in the second quarter.

The People's Bank of China devalued the yuan for the third consecutive day on Thursday. The Bank set the parity rate at 6.4010 yuan for $1, down 1.11% from the previous day's 6.3306, in an effort to boost exports to feed the slowing economy.

The FTSE 100 ended the day in red by 2.86 points at 6568.33. If during the day market cross the resistance level of 6630 on upside after consolidation, then it can test the level of 6700 and the immediate support level is 6500.

Stock Pick of the Day

JOHNSON MATTHEY PLC GROUP

RECOMMENDATION SELL

TARGET 2840

The Major trend of JOHNSON MATTHEY PLC it is showing strength for selling .If it breaks the support level then one can initiate the selling position in the stock. If it breaks the level of 2840 then it can test support level for the target of 2805 with the stop loss of 2875.

CHART FORMATION:-

Stock is trading in a range and trading near the trendline. Breaking the support line will lead to downside movement. Stock is trading below the 50 DMA with negative bias.

INDICATORS:-

RSI is trading near to 44.82 level with negative bias, in upcoming session downside movement is expected.

MACD and Signal line is sustaining below the zero level line.

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