Getting latest data loading
Home / Blog / blog / Market Analysis 20-9-2019

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

Market Analysis 20-9-2019

On Thursday, the Bank of England (BoE) voted unanimously to leave the benchmark interest rate and its asset purchase facility unchanged. The BoE took note of Brexit-related uncertainties and its concerns for global growth in making its decision. However, many experts from firms such as Rabobank and ING have noted that the narrative in the accompanying statements by the Bank of England is starting to tilt to that of extreme caution. They believe that the BoE’s continued reference to Brexit uncertainties may have scrubbed any chances of a near-term rate increase.

The lack of action on the BoE’s part, coupled with the rate hold being fully priced in by the markets provided a reaction of the UK’s stock market that can best be described as muted. The FTSE100 is trading at 7319.50 (as at the time of writing), which is barely above its opening price for the week.

Price gainers on the FTSE100 have been led by Lloyd’s Banking Group. Oil companies Shell and BP also benefitted from the sharp spike in crude oil prices early in the week. Sirius Minerals, Next, Cobham, Kingfisher and JD Sports are some of the companies on the loser’s chart.

Technical Analysis for FTSE100

It is typical for the markets to be very quiet just before an interest rate decision, and this is what the FTSE100 witnessed this week. Interest rates were kept unchanged as expected by the markets, leading to very little activity on the FTSE100 on Thursday.

 

As we look at the weekly chart of the FTSE100, we can see that the weekly candle’s range is the lowest it has been for several weeks. Analysis shows that price therefore continues to remain in the up channel that has been formed from the most recent price action.

 

 

 

 

 

 

 

 

 

 

 

FTSE100 Weekly Chart

This week’s candle has tested the 7360.5 horizontal resistance once more without breaking it. However, there is still room for further price progression on either side within the channel.

The daily chart reveals the presence of rising wedge within the channel pattern seen on the weekly chart.

 

 

 

 

 

 

 

 

 

 

 

FTSE100 Daily Chart

Price has already broken below the rising wedge’s lower border, but is initiating a return move which has been rejected at the broken lower border. To the downside, we see a horizontal support at the 7201.1 price level; site of a recent low seen on Sep 9. Further support is seen at 7051.7.

Bulls

Within the context of the weekly chart, bulls would be looking for a break above 7360.5 to lead the way for a push towards 7527.7 (Nov 2017 and April 2019 highs). Further upside above 7527.7 would complete the breakout from the symmetrical triangle, targeting the upper channel border as the initial target. This move would be in line with the expectations for the bullish continuation price move expected of this pattern, with 7888.3 being the long term goal.

Bears

Bears would hope for a failed break of 7360.5, which opens the door for a run towards 7201.1 in completion of the breakout move from the rising wedge pattern seen on the daily chart. A break above 7360.5 would negate the pattern. However, such a move would still encounter a pit stop at 7469 (June 18 high) or 7527.7, located at the triangle’s upper border. Price rejection there would open the door for a run to the triangle’s lower border at 7093.4, with potential pit stops to be seen at 7360.5 (Nov 2017 low) and 7265.0 (Feb 2019 low) below it.

Prices to watch: 7360.5 (bulls) and 7265.0 (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. 75% 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 11 months 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 1 year ago

Shreekant P

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

Posted 1 year ago

Nick W

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

Posted 1 year 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 1 year 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 1 year 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 1 year 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 2 years ago

Steve O

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

Posted 2 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 2 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 2 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 2 years ago

Mr Brian C

Easy to deal with.....

Posted 2 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 2 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 2 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 2 years ago

.