- Heightened tensions over the weekend with the attacks on the Saudi Arabian oil plant, which has sent the oil price higher by a record margin.
- This has seen global equity markets setback after strong gains in the first half of September.
- However, these setbacks have been modest, with stock indices showing resilience over the past 24-36 hours.
- Here we focus on the UK benchmark average, the FTSE 100, which holds onto both short- and intermediate-term bull tendencies.
FTSE 100: Bull theme
A Monday dip and a recovery from above 7306.5/04.5 supports similar to that seen Friday from this area, after last Thursday’s erratic advance to another new recovery high at 7385, to keep risks higher Tuesday.
The early September surge above 7268.5 set an intermediate-term bull trend.
- We see an upside bias for 7368.5; break here aims for 7385, 7400 and maybe 7419.
- But below 7306.5/04.5 opens risk down to 7277, maybe 7234.
Intermediate-term Outlook – Upside Risks: We see an upside risk for 7442.
- Higher targets would be 7666 and 7800.
- What Changes This? Below 6999 shifts the intermediate-term outlook straight to an intermediate-term bear theme.
Daily FTSE 100 Future Chart