ISEQ Overall pushes close to target

Price at time of writing – 4805.

Today I follow up last year’s note of 17 September, in which I initiated a strong buy on Ireland’s ISEQ Overall index.

In that update I suggested buying the index at 4277, with an ultimate target of 5014. I also highlighted that some minor resistance could be expected along the way, in a band defined as 4730-4768.

January saw the ISEQ Overall achieve this first line of minor resistance, peaking at 4869 before pulling back below 4730. Encouragingly, in the last few sessions the index has again broken above 4768, suggesting we are largely through this band of hesitation and back on trend towards 5014.

However, despite this positive development it must be remembered that most of the 17% upside we noted in September is now behind us. The remaining upside to my 5014 target is just 4.35%. Those that took my initial advice should stay long, but only nimble traders should look to be involved in the last few percentage points.

Recommendation: stay long. Target 5014. Stop-losses may be activated on weakness below 4700.

ISEQ Overall index chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.