This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
The UK 100 is slightly offside into the new week, as GBP remains up around last week’s highs, to the detriment of the index’s heavy international exposure, fuelled by the dollar extending last week’s bearish reversal. Interestingly Copper in the red (over-capacity concerns), not benefiting from USD weakness, thus hindering Miners. Oil, however, is understandably off its lows, but Energy names offering opposing reactions.
Contributors: UK Index -15pts; dragged lower by RDSb/BATS (stronger GBP), PRU (profit taking), BT (breakdown, further digestion of results/outlook), Miners (stronger GBP, Copper in the red) and VOD (M&A spend). Limiting the declines, are positive contributions from GSK/RB (extending rally after pause) ULVR (broken above 200-day MA), BP (Oil price higher) and SHP (Takeda share price rise increases implied value of takeover bid).
Technicals: The UK 100 has broken below 4-day rising support at 7715. It remains in a 7-week rising channel but, if it breaks below Friday’s lows of 7690, the floor of the channel won’t offer support until 7650.
Click below to expand sections for more detailed analysis
The UK 100 has broken below 4-day rising support at 7715. It remains in a 7-week rising channel but, if it breaks below Friday’s lows of 7690, the floor of the channel won’t offer support until 7650.
Watch levels: Bullish 7730, Bearish 7690
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