The FTSE 100 has surged to a two-year high this week after the British Prime Minister held onto his job amidst a barrage of pressure and also Boris Johnson hinted all remaining Covid rules could be scrapped early.
The leading UK index and heavily blue-chip weighted index broke out yesterday to a new high, and gained 1.1 percent, to hit its highest level since January 2020 amid hopes an end to the pandemic could be in sight.
The British Prime Minister Boris Johnson basically said that he expected the last domestic rules, including the requirement to self-isolate following a positive test, which is to be ditched from February 21.
The FTSE was also driven higher by gains for travel and leisure stocks including British Airways parent company IAG, Premier Inn owner Whitbread and B&Q owner Kingfisher. Mining stocks also moved higher as gold prices climbed.
European and US tech stocks are also looking more bullish, I would not be surprised to see the 7,800-level become a realistic target this month for FTSE traders buying the index.
Sentiment towards the UK100 is starting to get one-sided. According to the ActivTrader platform over 89 percent of traders are bearish towards the UK100. This is an increase in bearish sentiment of some 30% this week.
With these type of sentiment skews, it does allude to the fact that retail is getting hurt being long, hence we could easily see a push towards the 7,800 level this month.
UK100 Short-Term Technical Analysis
The four-hour time frame shows that a potential breakout is underway from an inverted head and shoulders pattern, following the recent breakout above the 7,630-resistance cluster,
The 7,630 level offers strong support on any moves lower and could set up the prospect of buy a dip in the FTSE100 if we see a big price rally or around the 8,000 zone, which is the patterns target.
See real-time quotes provided by our partner.
UK100 Medium-Term Technical Analysis
The daily time frame shows that the FTSE100 has broken above a trendline of extreme importance. Bulls now look to be targeting towards the 2020 for a confirmed breakout to new all-time high.
It should be noted that the top of the pattern sits around the 7,630 level. If the breakout holds then a massive move could be on the, or indeed a bullish break with at least 800 points of directional potential.
See real-time quotes provided by our partner.
A comprehensive website for traders, both experienced and new! Checkout our content and learn how to invest and speculate in the markets using margin traded products. Our team of educators has extensive experience and is here to help. Enjoy!
© 2020 YouTrading UK - Leaders in Trader Training.
Cookie | Duration | Description |
---|---|---|
__cfduid | 1 month | The cookie is used by cdn services like CloudFare to identify individual clients behind a shared IP address and apply security settings on a per-client basis. It does not correspond to any user ID in the web application and does not store any personally identifiable information. |
_wpfuuid | 11 years | This cookie is used by the WPForms WordPress plugin. The cookie is used to allows the paid version of the plugin to connect entries by the same user and is used for some additional features like the Form Abandonment addon. |
cf_use_ob | This cookie is set by the provider Cloudflare content delivery network. This cookie is used for determining whether it should continue serving "Always Online" until the cookie expires. | |
cookielawinfo-checbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-advertisement | 1 year | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Advertisement". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |
Cookie | Duration | Description |
---|---|---|
YSC | session | This cookies is set by Youtube and is used to track the views of embedded videos. |
Cookie | Duration | Description |
---|---|---|
_ga | 2 years | This cookie is installed by Google Analytics. The cookie is used to calculate visitor, session, campaign data and keep track of site usage for the site's analytics report. The cookies store information anonymously and assign a randomly generated number to identify unique visitors. |
_gid | 1 day | This cookie is installed by Google Analytics. The cookie is used to store information of how visitors use a website and helps in creating an analytics report of how the website is doing. The data collected including the number visitors, the source where they have come from, and the pages visted in an anonymous form. |
Cookie | Duration | Description |
---|---|---|
_fbp | 3 months | This cookie is set by Facebook to deliver advertisement when they are on Facebook or a digital platform powered by Facebook advertising after visiting this website. |
fr | 3 months | The cookie is set by Facebook to show relevant advertisments to the users and measure and improve the advertisements. The cookie also tracks the behavior of the user across the web on sites that have Facebook pixel or Facebook social plugin. |
IDE | 1 year 24 days | Used by Google DoubleClick and stores information about how the user uses the website and any other advertisement before visiting the website. This is used to present users with ads that are relevant to them according to the user profile. |
test_cookie | 15 minutes | This cookie is set by doubleclick.net. The purpose of the cookie is to determine if the user's browser supports cookies. |
VISITOR_INFO1_LIVE | 5 months 27 days | This cookie is set by Youtube. Used to track the information of the embedded YouTube videos on a website. |
Cookie | Duration | Description |
---|---|---|
_gat_UA-42160853-2 | 1 minute | No description |
cf_ob_info | No description | |
CONSENT | 16 years 8 months 3 days 6 hours 2 minutes | No description |