Rally on FTSE 100 Fizzles Ahead of the New Year

FTSE 100 ended Friday’s trading unchanged with a 0.05-point or 0.01% gain at 7,646.8. Meanwhile, FTSE 100 CFDs finished Friday with a loss. The stock index tapped a 5-month high at 7,676.7 before trading to close 10.3 points lower at 7,631.5.

Gainers and Losers

Fresnillo was the best-performing stock for Friday with a 3.33% profit. In second was Just Eat PLC which was up 2.42%. NEXT came in third when it clocked in a 2.19% gain for the day.

On the other hand, NMC Healthcare LLC continued to incur losses when it closed 2.58% in the red on Friday. Bunzl had the second biggest loss at 1.53%. Meanwhile, Smith & Nephew PLC was in third with a 1.01% loss for the day.

High Street Lending Due from the UK Today

There were no reports released from the UK on Friday. Given the lackluster performance of UK stocks, we can assume that investors are probably squaring their positions and rebalancing their portfolios ahead of the New Year.

For today, only the UK high street lending report for November is due for release at 9:30 am GMT. The report on new mortgages issued by High Street banks is expected to print at 41,300.

Read our Best Trading Ideas for 2020.

FTSE 100 Outlook

On the hourly chart of FTSE 100 CFDs, we can see that the stock index still has some room to move lower and still maintain its uptrend. When you connect its higher lows from December 18 and 23, the rising trend line seems to fall around the 7,600.0 psychological handle. This price also coincides nicely with the 61.8% Fib level when you draw the Fibonacci retracement tool from the low of December 23 to the high of December 27. Lastly, this price also seems to align with the 100 SMA. If there are enough bids in this confluence of support, we could see FTSE 100 rally to its December highs around 7,676.7.

On the other hand, if sellers dominate trading in the coming days, the stock index could fall to its December 23 lows at 7,553.9.

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