This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
The FTSE 100 made fresh 6-week highs this week, extending its June rebound, and looks set to close the week 1.1% higher.
Drivers which helped the index higher this week include hopes of more central bank stimulus (ECB, Fed) and higher oil prices (supply restrictions, Middle East geopolitics).
That said, the index is also in a consolidation pennant pattern with a GBP bounce (USD weakness) hampering the FTSE from making further gains. Note US markets back trading fresh record highs. Will this pennant help the index higher or lower?
Bulls need a break above 7458 highs to exit the pennant to upside for a bullish breakout towards 7528 April 2018 highs.
Bears require a breach of intersecting rising support at 7409 for downside to 7360, if not last week’s 7320 lows.
Our watch levels: Bullish 7460, Bearish 7405
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