FTSE 100 nears key resistance level despite Covid-19 and Brexit fears

The blue-chip index had a strong performance this week despite Covid-19 and Brexit concerns, with it capable of breaking above 6000 points if UK stocks can carry their positive momentum forward into next week.

  • FTSE 100 rally continues this week despite Covid-19 and Brexit concerns
  • Blue-chip index continues to drive higher, with key resistance up ahead

The FTSE 100 has rallied 6% this week despite rising Covid-19 cases leading to the UK government imposing a second national lockdown and investors growing increasingly concerned about the economic impact of Brexit.

After yet another positive performance, the blue-chip index has recorded its best weekly gain since early June, spurred on by the Bank of England’s decision to step up stimulus measures in a bid to support the UK economy weather the impact of Covid-19 and another lockdown.

The FTSE 100 is trading at 5910 points at the time of publication, with the blue-chip index down 22% year-to-date.

FTSE 100: risers and fallers

Mining companies like Glencore, Rio Tinto and Anglo American, led the move higher for the blue-chip index due to a potential bull market in commodities coming down the pipe as a result of further economic stimulus by central banks and supply shortages.

‘Glencore has delivered a solid third quarter operating performance, including the continued successful ramp-up of Katanga, which remains on track to achieve design capacity by year end,’ Glencore CEO Ivan Glasenberg said. ‘We maintain our 2020 full year production guidance, except coal, which was adjusted for the extended strike at Cerrejon.’

‘We will provide a detailed business update, including progress on climate change initiatives at our investor update on 4 December,’ he added.

At the other end of the market, Rolls-Royce Holdings continues to see its share price come under further pressure, falling 6.3% on Friday and down 70% year-to-date. The British engineering company’s latest shares tumble came as its massive job-cutting programme begun to accelerate.

Rolls-Royce plans to reduce its headcount by almost 1400 in its civil aerospace division, with the unit hit hard by the coronavirus pandemic which has created complete chaos for the travel and aviation industry.

FTSE 100: technical analysis

The FTSE 100 is on the rise once again this morning, with the index having seen an impressive recovery over the course of the week thus far, according Josh Mahony, senior market analyst at IG.

‘That rise has taken us back into the 76.4% Fibonacci resistance level, bringing the wider bearish trend into question,’ he said. ‘Ultimately that trend does still hold until we see a rise through the 6041 swing-high.’

‘As such, the forthcoming period will be very telling, with a reversal from Fibonacci resistance or rally through 6041 paving the way for the next major move,’ Mahony added.

How to trade the Weekend UK 100

Did you know? You can trade forex and major indices like the Weekend UK 100 (based on the FTSE 100) during Saturday and Sunday with IG. Our world-leading trading platform is the only solution to offer weekend trading on indices.

Whether you want to go long (buy) or short (sell) the Weekend UK 100 based on the above outlook, you don’t have to wait until the markets reopen on Monday to trade.

The weekend prices for indices and forex are quoted separately to their weekday counterparts, based on our view of the prospects for that market given client business and news flow. As a result, you can use these markets to hedge against risk on your weekday positions.

Ready to start trading indices? Open a live account or practise using a demo version today.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Take a position on indices

Deal on the world’s major stock indices today.

  • Trade the lowest Wall Street spreads on the market
  • 1-point spread on the FTSE 100 and Germany 40
  • The only provider to offer 24-hour pricing

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.