FTSE 100 is off to a bullish start to this week’s trading. The UK’s blue-chip stock index is currently trading at its four-month highs at 7,515.7, 141 points or 1.91% from where it opened today.
Gainers and Losers
Gains are currently led by British American Tobacco at 4.46%, followed by Bunzl at 4.27%. In third is Glencore at 3.92%. Nmc Healthcare LLC is in fourth at 3.69% while Barclays rounds up the top 5 with a 3.44% profit.
Brexit Plan to be Passed Soon?
Market investors seem to be currently fueled by risk appetite stemming from the results on the last UK general elections. Remember that Prime Minister Boris Johnson and the rest of the Conservatives Party have secured majority seats in Parliament. This means that a Brexit deal will likely be passed soon.
It could be that equity investors are celebrating the end of the uncertainties brought about by the UK from the European Union. Now we’ll just need to wait and see how Prime Ministers negotiates the country’s exit plan.
On the daily chart of FTSE 100 CFDs, we can see that the UK’s blue chip stock index is trying to push past resistance at 7,442.7. This level has limited an upward movement on the stock index since July 2019. If there are enough buyers in today’s trading and we get a strong bullish close above resistance, it could be an indication that the stock index is on its way to its yearly highs at 7,727.4.
On the other hand, if buyers are not able to sustain the rally in the FTSE 100 today, a bearish candlestick may indicate a drop. We can then look for support around 7,120.7 where the stock index has found support for the past five months.