This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
As we move into the weekend the FTSE100 is bouncing from another flirt with round number 7000, albeit still stuck in what is now a week-long sideways channel with a 7000 floor and 7100 ceiling.
Uncertainty remains with regards to UK politics and Brexit, which could yet move GBP next week with a knock-on for index of internationally exposed and currency sensitive UK blue-chips. What the weekend delivers for the PM could mean we open significantly higher or lower come Monday morning.
Bulls need a break above 7050 to regain the upper half of said channel and for another test of the 7100 ceiling. This may require a bout of GBP weakness to help engineer it, which may depend on the Brexit/Westminster outlook.
Bears on the other hand still have their eyes on that 7000 floor, eager to see another downside test that could open the door for a drop towards late October’s 6850 flirt with 2018 lows. Before that they need to see this bounce reverse through 7020.
Our watch levels: Bullish 7050 (channel mid-point), Bearish 7020 (to reverse this bounce and 7025 breakout)
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.Prepared by Michael van Dulken, Head of Research