FTSE 100 maintains gains; further rallies likely
The index could see more positive movement this week, according to IG senior market analyst Joshua Mahony.
The FTSE 100 continues to climb in the wake of the UK General Election.
The index’s bullish nature carried across to Monday’s market, trading as high as 7549.9 at 12PM.
This is its highest price level since August this year, based on IG data.
IG Senior Market Analyst Joshua Mahony says that the FTSE 100 has been performing well thanks to ‘the glow of the (UK) election and trade war double whammy’.
On Thursday, 12 December, the pro-Brexit Conservative Party won a majority of votes to become the newest government. The following day, the FTSE 100 rallied nearly one percent past the 7400 level.
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Further upside likely
Mahony also noted that ‘further upside’ for the index during the rest of this week is ‘likely’, with ‘domestically focused banks and housebuilders gaining ground’.
The question now, he adds, is whether the UK pound will experience another strong surge, as this ‘could derail the more international elements’ of the FTSE 100.
A Fibonacci resistance around 7557 could also cause price movement to reverse, Mahoney warns. Barring that, all eyes are now on levels reaching the July 2019 peak of 7730 over the coming weeks.
The FTSE 100 closed at 7546.9 on Monday night on the IG platform.
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