FTSE 100 likely to trade down in weekend markets
The blue-chip index has seen its rally end on Friday, falling 5%, after enjoying a four-day rally this week, with investors able to continue trading the FTSE 100 over the weekend with IG.
The FTSE 100 was on track to finish the week on a high after trading 12% higher over the first four sessions but Friday eroded those gains, with investors opting to take profits as Covid-19 cases continue to rise.
FTSE 100 futures are down 4%, implying that the index will trade lower on weekend markets.
Maximise your opportunities to profit by trading on the weekend with IG. We offer 24/7 trading on GBP/USD and global indices.
FTSE 100: technical analysis
We have continued to see strong gains for the FTSE 100, with a new higher high above 5800 on Thursday.
‘The price found support around 5500 in early trading on Thursday, before bouncing,’ Chris Beauchamp, chief market analyst at IG said. ‘A higher low above 5500 would open the way to 5894 and then on to 6205.’
What is weekend trading?
Weekend trading gives you access to forex and indices markets on a Saturday and Sunday. So, if news breaks about the ongoing coronavirus pandemic – or central bank measures to ease the strain on global markets are announced – you no longer need to wait until markets open 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. Weekend indices and forex positions will rollover into regular weekday positions if they are kept open after the Sunday close, with any stops or limits remaining in place.
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