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FTSE100 Focus - 16 May 2018
The FTSE100 sits on small gains today (break-even for the week) holding its 7-week uptrend towards Jan 7800 record highs thanks to a steady northerly creep by oil and a GBP still very much under the cosh. The former comes from supply concerns, helping Energy and Mining shares to trade fresh multi-year highs. The latter, which flatters FTSE international profits and dividends, derives from both UK Brexit woes and opposing USD strength (demand for USD as, 1) Fed raises rates, and 2) safe US Treasury Bonds offer their best yields in 7yr highs). Even the threat of no June 12 US-NK summit is failing to derail recent bullishness (Kim playing Trump at his own “threaten-first-negotiate-later” game?)
Contributors: FTSE +10pts; driven north by outsize contributions from Miners (high oil, weak GBP, Copper up despite strong USD), MCRO (ups guidance), DGE/RB (weak GBP), BP (high oil, share breakout), PPB (M&A, US Supreme Court ruling on US sports betting) and MNDI (results). Holding the index back are RDSB/ULVR (profit taking), LLOY (preference for RBS), VOD (New CEO, M&A) and BT (extending long-term downtrend).
Technicals: The FTSE100 remains in a strong uptrend. Rising support at 7715 (6-day rising lows) and 7700 (7-week rising lows); Resistance at 7780 (6-day rising highs), then 7800, (Jan highs) and 7840 (7-week rising highs).
Click below to expand sections for more detailed analysis
- Will the index fall towards lows of 7690 (-47pts) ? or;
- Will the index rise towards highs of 7780 (+45pts)?
The FTSE100 remains in a strong uptrend. Rising support at 7715 (6-day rising lows) and 7700 (7-week rising lows); Resistance at 7780 (6-day rising highs), then 7800, (Jan highs) and 7840 (7-week rising highs).
Watch levels: Bullish 7745 (this morning’s highs), Bearish 7710 (6-day rising lows)
Solid Green line
Solid Red line
- Trend: Uptrend, channels
- Potential support: 7715, 7700, 7690, 7630, 7600
- Potential resistance: 7745, 7752, 7780, 7800, 7840
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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Prepared by Michael van Dulken, Head of Research