FTSE 100 has surged higher on expectations of a deal, clearing key price resistance from May 2020 high and 2018 low. Analysts at Credit Suisse look for further strength to the point-of-breakdown from the Q1 top at 7004.
Key quotes
“FTSE 100 has not only maintained its break above the key upper end of the whole range that has been intact since May at 6512 but also importantly the 2018 low at 6537 and the close above here on Friday has also seen a large bullish ‘outside week’ established to reinforce our bullish outlook. We thus look for this to clear the way for further strength with resistance seen at 6624 next – the 61.8% retracement of the Q1 collapse – with scope for 7004 further out, the point-of-breakdown from the Q1 top – potentially 7042/45.”
“Only below 6264 would warn of a potential ‘false’ break higher and further ranging, with key support seen at the 200-day average at 6021.”
“The UK trend still remains down versus MSCI World, although there are some signs this is stalling and we stay alert to any further signs of improvement and a potential base.”
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