Current trend

London's leading FTSE 100 index is trading sideways at 8169.0. The situation on the bond market is putting pressure on the asset's position.

Investors focused on corporate reporting, with building materials maker CRH Plc reporting its financials yesterday. Quarterly revenue rose to 8.09 billion pounds from 7.59 billion pounds, also beating the 8.07 billion pounds reported in the same period a year earlier, while earnings per share rose to 1.52 pounds from 1.48 pounds, compared with expectations of 1.63 pounds.

In turn, the revenue of the telecommunications company BT Group Plc. was fixed at 5.09 billion pounds, exceeding 5.05 billion pounds previously, but falling short of 5.21 billion pounds in the same period last year, while earnings per share reached 0.0456 pounds, which coincided with analysts' expectations, and exceeded 0.043 pounds in the same period of 2023.

The high cost of borrowing (4.75%) has a positive effect on the yield of leading bonds, which in turn is a restraining factor for the stock market: the yield on 10-year bonds rose to 4.499%, close to the high of 4.500% on October 10 last year, on 20-year ones — to 4.937%, still below the monthly high of 4.982%, and on 30-year ones — to 4.966% from 4.938% a week earlier.

The growth leaders in the index are IMI Plc. ( 5.42%), Antofagasta Plc. ( 4.75%), Anglo American Plc. ( 3.64%), Glencore Plc. ( 3.11%).

Among the leaders of the decline are Auto Trader Group Plc. (–7.16%), J Sainsbury Plc. (–4.11%), Rolls-Royce Holdings Plc. (–3.69%).

Support and resistance

On the daily chart, the index quotes continue their local correction, approaching the support line of the descending channel with boundaries of 8400.0–8000.0.

Technical indicators are in a stable sell signal state: the range of EMA fluctuations on the Alligator indicator expands towards decline, and the AO histogram is forming new corrective bars, being slightly below the transition level.

Support levels: 8110.0, 7910.0.

Resistance levels: 8230.0, 8410.0.

Trading tips

If the asset reverses and continues declining, and the price consolidates below 8110.0, short positions can be opened with the target at 7910.0. Stop-loss — 8200.0. Implementation time: 7 days and more.

If the index continues growing, and the price consolidates above the resistance at 8230.0, long positions with a target of 8410.0 and stop-loss of 8150.0 will be relevant.