Where now for the FTSE 100 and FTSE 250 after ‘Boris Bounce’?
The blue-chip index and the FTSE 250 have both surged in the wake of the UK general election that saw the Conservative Party secure a landslide victory.
![FTSE 100 and FTSE 250](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/news-article-image-folder/BG_london_stock_exchange_LSE_ftse_21988191.png/jcr:content/renditions/original-size.webp)
The FTSE 100 has gained more than 3% since the Conservative’s secured a landslide victory in the UK general election last week, with the blue-chip index closing at a touch higher on Tuesday at 7,525.
The FTSE 250 also surged by more than 4% since the election, beneffiting from the so-called 'Boris Bounce', though closed 1% lower on Tuesday to 21,690.
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IG Technical Analysis
The FTSE 100 has seen a sharp surge in the wake of the UK election and US trade war breakthrough. The rise through 7,446 points towards a potential surge towards the next major resistance levels of 7,730 and 7,903, according to IG Senior Market Analyst Josh Mahony.
![Chart1](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/content-2-chart-images/FTSE 100 weekly - 17-12-19.png)
However, the daily chart highlights a difference perspective. The wider creation of lower highs remains in play until we see a break through 7,730, and the recent rally into 76.4% Fibonacci resistance being respected with slight losses.
As such, watch out for the whether we see this 7,557 level broken or not as a guide to where we go from here. In particular, a break below 80 on the stochastic oscillator could point towards a more bearish phase coming into play for the near-term.
![Chart2](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/content-2-chart-images/FTSE 100 daily - 17-12-19.png)
The FTSE 250 saw a huge surge into record highs after the UK election, with the rally taking us through 21371.
We have seen price consolidate around trendline support since then, and the ability to remain above both trendline and horizontal support will be crucial in the push to continue gaining ground.
A decline below that zone of support could point towards a retracement phase coming into play.
You can go long or short the FTSE 100 with IG using derivatives like CFDs.
![Chart3](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/content-2-chart-images/FTSE 250 daily - 17-12-19.png)
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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