CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

FTSE relapses back into month without gains

Article By: ,  Financial Analyst
January 25, 2016 3:32 PM

The FTSE 100’s failure to grab back key zones during its fight back late last week leaves more than an element of doubt.

On Monday the main doubt remained its ability to begin gaining for the year in what remains of this month.

Losing as much as 1% earlier, the British-listed index with an infamously light connection to the UK is still in the red for the year in the last week of January.

FTSE’s failure to post positive performance in January raises the hurdle for forthcoming months, especially as the latest symptom of one of global markets’ deepest malaise—weak oil prices—have also stalled after rallying on Friday.

The market has largely been kept in the red on Monday by weaker oil shares, with the energy sector trimming 11 points off the underlying ‘cash’ index.

The underlying index closed at 5900 on Friday, marking the level as an important waypoint and likely resistance beyond it being a ‘psychological’ whole number.

 

The same threshold appears in the most liquid tradeable asset derived from the FTSE 100, Intercontinental Exchange’s FTSE Future contract.

ICE FTSE turned back from 5901.9 during the second hour of the session and has remained weak since.

Its first call should be the 2015 low (5761) which failed to provide sustained support during the broad download between the last days of 2015 and late Thursday last week.

There does not appear to be any reliable proven support beneath.

FTSE Future is currently bolstered in the pictured four-hour view by several moving averages (white: 14; green: 21; blue: 35).

The FTSE Future is testing these too, after having been enclosed by them for most of the month.

Should they buckle, the case for an extension of January’s decline of some 10% might be strengthened.

Fibonacci projection suggests a first major target of 5622 (38.2%).

Four-hourly momentum is dragging lower but is neutral with respect to the state of sentiment—the Slow Stochastic indicator is neither oversold, nor overbought.

 

 

ICE FTSE FUTURES: FOUR-HOURLY CHART

Please click image to enlarge

 

 

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024