- UK100 break to all-time high above 7600
- Index has been in a 6-month consolidation after making previous record peak
- If breakout holds then 8000 could be a possible target
The FTSE 100 (UK100 on xStation) has rallied strongly today moving above its previous record peak set back in June to post a new all-time high. The index has been in a broad consolidation range from 7200-7600 for the last 6 months against a positive global backdrop for equities that has seen US stocks break records regularly.
The UK100 has moved above its previous peak to post a new all-time high. Source: xStation
There is no specific catalyst for the latest move higher which has seen a rise of almost 1% on the day, with favourable seasonality effects probably playing an important role. Mining stocks feature prominently in today’s rise with Rio Tinto, Glencore and Anglo American all firmly in the green.
Following a similar length period of consolidation in 2015-16 the market made a strong break higher. A possible target for longs can be taken as the size of the range (7600 -7200 = 400) projected above 7600 to give 8000 (7600 + 400 = 8000). Source: xStation
December has been the second best month for UK stock market bulls in the past decade and the FTSE has enjoyed a strong run higher heading into the Christmas break. The much discussed Santa Rally could still be to come and from a technical point of view a clean break higher after a fairly long period of consolidation paves the way for significant upside ahead