This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
The UK’s UK Index index trades off its highs, but holds above 7405 to maintain an uptrend dating back to 17 April. On the whole, Miners are positive in response to higher metals (and oil) prices as the USD rally stalls, trade war fears ease and Trump hints at a sanctions reprieve for aluminium giant Rusal. GBP found support to remove the catalyst of the last few days after mixed data and commentary from the BoE reduced the probability of a May UK rate hike. Optimism still surrounding earnings season, even if we have had some pockets of disappointment (Santander in UK, Alphabet costs).
Contributors: UK 100 +25pts thanks to SHP (BBG reports of higher Takeda bid), BP/RDSb (oil at highs), ULVR/DGE (defensive rebound), BHP (Copper prices off lows), HSBC (pre-results optimism, Asia exposure), BAE (breakout, broker upgrade). Resistance from VOD (profit taking, 100-day MA resistance) and AZN (drug trial news).
Technicals: UK 100 holds above 5-day rising lows support at 7405 which keeps alive the possibility of further gains (8.4% already from March lows) to retrace the Jan/Feb’s correction from 7800 record highs.
Click below to expand sections for more detailed analysis
The UK Index 100 holds above 5-day rising lows support at 7405 which keeps alive the possibility of further gains (8.4% already from March lows) to retrace the Jan/Feb’s correction from 7800 record highs.
Watch levels: Bullish 7440, Bearish 7400
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
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