This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
After another 280 point weekly fall, the UK 100 now sits around 500 points from its September rebound peak. In fact, we are almost 800 points away from Summer highs and only 18 out of 100 UK Index contributors are positive for the week.
Higher gold prices have obviously helped the safe-haven metals Miners (Randgold, Fresnillo, etc), but, curiously, many Retailers (Marks & Spencer, Tesco, Next, etc.) are also among the winners. For more on this, see Mike’s full rundown.
So far, the rebound has extended to 100 points, with the Bulls looking for a break above 7075, to inspire further recovery towards breached September’s support around 7250.
Bears on the other hand will be looking for another drop below psychologically significant 7000 level and another test of yesterday’s 6923 lows.
Our watch levels: Bullish 7075, Bearish 7000
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 ResearchComments are closed.