• 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.

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 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. 

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 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