Getting latest data loading
Home / Blog / blog / Market Analysis || 17-4-2020

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

Market Analysis || 17-4-2020

After a lackluster to the week which was a day short due to the Easter weekend holiday, the FTSE100 was able to stage further recovery on Thursday, as signs that the US would soon reopen for business lifted the mood of investors across the Atlantic. Today’s price action is also seeing a bullish spurt, albeit on low trading volumes, as earnings numbers from Rip Tinto surprised the markets. Higher-than-expected quarterly production numbers enabled Rio Tinto stocks to move up by more than 5%, and also provided a fillip for other mining stocks such as Glencore and Peers PHB Group to push higher on the day.

These gains follow the Tuesday and Wednesday trading sessions that were mostly dominated by risk-off sentiment and a higher British Pound, which gained on news of UK PM Boris Johnson’s release from intensive care as he recovers from his coronavirus infection.

News of the production cut deal from the virtual OPEC + meeting over the weekend did little to push up oil prices, and contributed to the risk-off sentiment which saw the slump on the FTSE100 on Tuesday and Wednesday. A weaker pound this Friday is also helping to sustain bullish sentiment on the FTSE100 as the UK prepares for the extended lockdown announced yesterday.

The top gainers on the FTSE100 this week include:

  1. a) Ocado Group (13.65%)
  2. b) AstraZeneca (12.28%)
  3. c) Flutter Entertainment (11.63%)
  4. d) Rentokil Initial (11.28%)
  5. e) GlaxoSmithKline (8.59%)

The Top Losers chart is dominated by stocks such as:

  1. a) Tui AG (-15.53%)
  2. b) Roual Bank of Scotland Group (12.18%)
  3. c) Standard Chartered (-10.43%)
  4. d) Royal Dutch Shell (-10.11%)
  5. e) BP (-10.02%)

The composition of the losers’ chart is not exactly surprising. Oil stocks continue to get hammered by low crude oil prices, and the UK banking downgrades by Credit Suisse have hurt stocks of the top UK banks in the past week.

Technical Outlook for FTSE100

Unlike its counterpart markets in the US, the was unable to make significant headway to the upside, and has failed to break the 5811.96 resistance level, formed by the previous high of the weekly candle that ended March 21. As noted in the last analysis, this price level is very close to the 38.2% Fibonacci price level, which is located at 5880.92. Thus despite price being located at 5823,94 as at the time of writing, the resistance zone bordered by 5811.96 as the lower barrier, and 5880.92 as the upper barrier remains intact.

FTSE100 Weekly Chart: April 17, 2020

The weekly candle presently resembles a doji, which shows the current indecision between buyers and sellers on the FTSE 100.

The daily chart shows that price rejection at the current resistance may lead us to be tempted to call that price level as point D in the “W” harmonic pattern. However, price has not made much progress to the downside from that point, which is atypical for the pattern. We will therefore abandon attempts at looking at the price action as a W pattern and rather, look at the support-resistance levels as a determinant of future price action.

FTSE100 Daily Chart: April 17, 2020

Today’s price candle opened with an upside gap. Attempts to close this gap succeeded briefly, but price has continued to the upside ever since and is now challenging the resistance level, albeit with very low trading volumes for the day.

A break above this resistance requires two successive daily candle closing penetrations above that level. A successful break opens the door towards the next resistance at 6228.08 (50% Fibonacci retracement line and March 9/10 highs). Further advance could target 6453.06, where previous lows of February 28 and March 2 are located.

Conversely, a failed break of the resistance could lead to price rejection at that point, which offers FTSE 100 sellers the opportunity to force things their way, targeting initially the support targets found at 5450.50 (23.6% Fibo retracement), 5275.79 or quite possibly the cluster of lows at 4981.9. The lows of 1 August 2011 and 23 March 2020, which congregate at 4755.38, may constitute the next support level if 4981.90 is unable to provide a support for any downward momentum.

Bulls

Bulls would need a break of 5880.92 to usher in further upside recovery on the FTSE100.

Bears

A breakdown of the 5567.59 support area is enough for bears to continue pushing price action downwards.

  • Prices to watch: 5880.92 (bulls) and 5567.59 (bears).
« Back to Category

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.


Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.

Comments are closed.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
EXCELLENT

4.81 Average

156 Reviews

George

I have found Accendo staff very helpful,,and informed. I have traded with you for some years now and have no regrets. Keep up the good work!

Posted 1 year ago

Shaun D

since signing up for Accendo I have had two traders, Mark and Sam. I have found both of these to be very informative about how CFD's work and they have made it very easy for me. Since working with Sam (last four months) my trading knowledge has improved and I can make more informative decisions about which Company's to invest with. Keep up the good work Sam.

Posted 1 year ago

Anonymous

I am very happy with the service I get from Accendo Markets and in particular Amrit Panesar. He is very professional and pleasant to speak to and this counts for a lot.

Posted 2 years ago

Shreekant P

Its a good site for dealing stocks worldwide and having good staff.

Posted 2 years ago

Nick W

Krishan Appiah is one of the most dedicated / informative broker I have ever had.

Posted 2 years ago

Thomas I

Since I have been trading with Accendo Markets I have experienced much greater success than has been my experience with other trading companies mainly due to the help given by, what I consider to be my terminal with the trading floor, Mark, who has been most helpful in reminding me of the progress of my positions throughout the day and keeping me in touch with those positions so that I can more easily make successful trades when appropriate instead of missing out on opportunities through lack of attention. He draws my attention to the situations and enables me to make profitable trades. I am very happy with the situation at the moment and am enjoying the experience. Thomas Irving.

Posted 2 years ago

Kartik A

Accendo markets keep me connected with the market and its very well followed by Mr. Krishan Appiah ,which helps me to take certain decision on time.

Posted 2 years ago

Peter p

I have been trading with Accendo Markets and James Abbott my account manager for coming on 5 years now, James Abbott the senior trader of Accendo Markets provides me with up to minute information when I need it and find him very easy and professional to deal with. Whenever I need to trade or am not sure about anything James is always their to help with any queries I may have. The Accendo Platform I find very easy to use and navigate although it has been slightly changed over the years but definitely for the better. Personal when I do trade 90% of the time, I rather telephone call to place my trade dealings and if James is not there to take my call I find others at Accendo like Sam, Lee take my trades and are. All in all everyone at Accendo Markets are amazing to deal with and my relationship with Accendo is just as I like it. Peter Petrou

Posted 2 years ago

Mrs. J

"Our Trader, Aymen Azizi, has been nothing but attentive to our every need throughout our long relationship with him. No issue is too small, full explanations on all our questions."

Posted 2 years ago

Brian R

I have been with Accendo for a long time now, ten or twelve year's, probably more . As I told Sam (my trader) I thought that CFDs were better than sex . I stopped trading for a few years and only started back about a couple of months ago. But it is as if I had never been gone , so to speak. Sam has helped me every step of the way, at my age one forgets things. I have only praise for Accendo and as far as I am concerned the platform is the best . Now I am back trading at 71 years of age, I might even try sex again. Brian Robertson.

Posted 2 years ago

Jim W

I understand how to make a profit with CFDs. I am restricted by the range of companies I have knowledge of. Although, I am not sure that is a big problem. Tom Robertson is a very fine man.

Posted 2 years ago

Rebekah S

Well, I would not be trading without the help of my trader, Sam Alnakkash. He provided a really great overview of Accendo Markets, an insight into trading in general and how to get started in trading online. His advice, support and training has been fantastic all along the way, enabling me to start trading earlier than I would have done had I not had the support. He has also been very adept at understanding me as a client in order to help me achieve my trading goals. I still have a lot to learn and hope I will get there.

Posted 2 years ago

Nick z

I like the updates on shares I trade. Updates from Bloomberg and Reuters plus industry updates and breaking news. I've had Matt Grice and James Abbott and found both to be excellent. I would like to continue a personal service with James. He understands how and which stocks I trade.

Posted 3 years ago

Steve O

Excellent, knowledgable broker interaction and communication, coupled with very good research and analysis.

Posted 3 years ago

William P

Being new to direct trading I needed help and was given all the time and advice that I needed to feel fully able to make decisions on what I wanted to invest in. I asked for and got exactly the type of info I required provided by Tom Cook, who I would recommend to anyone looking for help.

Posted 3 years ago

Mr. W

I have been dealing with accendo for the past 8 years my broker Amrit I find him very helpful when he is there lol and had many offers to change but will not do it Bill Roberts

Posted 3 years ago

Zoran N

Very good all round service! Timely market information. (charts + trends coverage ) On the ball accounts managers ,quickly available and alert . Part of my success owed to my personal manager Mr Sam Springet , than you.

Posted 3 years ago

Mr Brian C

Easy to deal with.....

Posted 3 years ago

Muhammed S

Accendo markets are great for trading cfds and their research is second to none! Aymen manages my account is extremely helpful and always keeps me updated on market info. Thanks again

Posted 3 years ago

Mr Buta B

Always available, whenever I call I get straight through to someone that can and will help. The staff are very knowledgeable, helpful and easy to talk to.

Posted 3 years ago

Stephen B

Aymen Azizi keeps an eye on what is happening in the market and informs me with timely relevancy, email call, and txt.

Posted 3 years ago

.