This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Fresh appetite for risk helped the FTSE 100 breakout to the upside this week, testing 7600. Its exit from late June’s consolidation pattern, to hit fresh 10-month highs, extended the June uptrend. This increases the chances that it can push on towards last year’s 7903 record highs of late May.
Investors remain hopeful about cheap money for longer (Fed rate cut, more ECB policy easing) keeping asset price inflated, combined with an easing in trade war (US-China) and nuclear (NK-US) fears.
Bulls need a break above 7620 to build upon this week’s gains and push on towards 7700. Bears, on the other hand, require a breach of 7530 to negate the breakout and open the door for a retrace towards 7400.
Our watch levels: Bullish 7620, Bearish 7530
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