This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
11 December
All major trends are punctuated by minor corrections which can retrace as much as 2/3 of the preceding move. That goes for both uptrends and downtrends. So with the markets currently trending down in the medium term, not only can you bank profits by trading short, you can also bank them by trading long – but you need to be a spider: always ready! (or a cat – I’m aware that spiders are a little freaky)
The UK 100 fell below 6000 on Friday afternoon, to trade levels last seen end-September after which we saw a strong 500pt rally into mid-October. Since then we have seen two further sell-offs and a rally in between. Trading the index directly involves the purchase of a contract worth £10 per point. The Late Nov 6000-6400 rally roughly entailed a £4,000 move – profit for those that traded long, loss for those that went short. The subsequent retracement to current levels is now worth over £4,000 – this time a profit for those that were short and a loss for those that were long. So even though the index continues to decline from April highs above 7000, both bulls and bears are operating with success. So whatever your view, you can too.
Key to calling these moves correctly and consistently is the identification of potential support and resistance levels. Our research team here at Accendo Markets does this for clients every day. The key point is that there are always opportunities in the markets, whatever the major trend. Spiders are some of nature’s best predators. They are always ready to pounce. A spider quite literally has eyes in the back of its head, so I want to offer you a few extra eyes and a web to help catch those opportunities. To get the best morning report in the City and daily research & trade ideas delivered straight to your inbox every day, sign up for our no-nonsense research here. Find out what it’s like to have eyes and ears everywhere…
John Truong, Senior Trader
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
Comments are closed.