Current dynamics

The leading index of the London Stock Exchange FTSE 100 demonstrates local upward dynamics in the area of 8132.0 supported by corporate reports. Tomorrow, investors' attention will be focused on inflation data, in case of acceleration of which the Bank of England's plans to reduce the interest rate may be changed.

Thus, analysts assume that the consumer price index in October may increase in annual terms to 2.2% from 1.7%, going beyond the target range designated by the regulator, and the base indicator excluding food and fuel prices may fall to 3.1% from 3.2% previously. If preliminary estimates coincide with real data, this may negatively affect investors' desire to buy company shares. In addition, an increase in inflation may accelerate the growth of bond yields, against which the position of the stock index does not look very confident. It should also be noted that in November, the housing price index from the research company Rightmove Group Ltd. decreased from 0.3% to -1.4% month-on-month. The agency's experts note that market participants took a break to assess the impact of the new state budget on their financial situation. However, the national construction market is much stronger than it was a year ago, which allows analysts to expect its recovery in 2025: experts expect real estate prices to grow by 4.0%, to a four-year high.

The high cost of borrowing at 4.75% is positively affecting yields on leading bonds: the 10-year Treasury rate rose to 4.464%, which is close to the peak of 4.550% from November 6, the 20-year rate increased to 4.892%, which is short of the one-month high of 4.982%, and the 30-year rate increased to 4.909%, from 4.888% a week earlier.

The growth leaders in the index are Melrose Industries Plc. ( 7.58%), DCC Plc. ( 3.61%), Smurfit WestRock Plc. ( 3.00%), Intermediate Capital Group Plc. ( 2.20%).

Among the leaders of the decline are B&M European Value Retail SA (–8.06%), Vistry Group Plc. (–5.58%), ConvaTec Group Plc. (–3.70%).

Support and resistance levels

On the daily chart, the index quotes are approaching the resistance line of the descending channel with boundaries of 8360.0–8000.0.

Technical indicators are in a state of a stable sell signal, which may soon change to an upward one: the EMA oscillation range on the Alligator indicator has begun to gradually narrow, and the AO histogram is forming new correction bars, being below the transition level.

Support levels: 8090.0, 7920.0.

Resistance levels: 8180.0, 8360.0.

Trading scenarios

If the index continues to grow and the price consolidates above the resistance level of 8180.0, buy positions with a target of 8360.0 and a stop loss of 8120.0 will be relevant. Implementation period: 7 days or more.

In case of a reversal and continuation of the decline, as well as consolidation of the price below the support level of 8090.0, sell positions with a target of 7920.0 will be relevant. Stop loss - 8200.0.