FTSE 250 looking attractive after latest retracement
The FTSE Mid 250 has been hit hard as last week ended, yet this appears to provide bulls with a fresh opportunity to get long.
FTSE 250 pulls back as rising yields derail sentiment
The FTSE Mid 250 index has been on the back foot since Wednesday’s peak, with the index falling back towards the key 20785 support level. That pullback looks to be a retracement within a wider uptrend that has dominated the past four months. However, we have seen some questions asked of late, with the rise in yields begging the question of whether stocks are really the only show in town anymore. Nevertheless, the value element of the FTSE 250 does provide some optimism going forward, with pro-cyclical stocks, which have been beat up in 2020, expected to outperform their growth counterparts.
With that in mind, this index is likely to rise again despite this current pullback. This wider view does highlight the trendline support that would come into view if price breaks below the 20785 mark. However, until that occurs, there is a good chance this recent pullback provides us with a good buying opportunity here.
The four-hour chart highlights that last pullback, with the price moving in towards the 20908 support level. With the price rebounding from above that swing-low, it looks like an opportune moment for the bulls to get back in charge as traders continue their shift towards value over growth.
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