The FTSE 100 index (reference benchmark of the British stock market), after having risen towards mid-February to an intermediate peak of 8,050 points, underwent a rapid correction that pushed prices close to the important static support situated at 7,200 points.
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The holding of this last level is important as it can halt the descent and favour the construction of a solid accumulation base, an indispensable premise for starting a solid upward movement.
Any recovery will however have to face a first resistance at 7,625 and a second barrier in the 7,720-7,730 points area.
A return above this area would be positive, even though, from a graphical point of view, only the breakout of 7,800 could provoke a bullish trend reversal and open up interesting areas for growth.
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A daily close below 7,200 points would instead provide a dangerous bearish signal of a directional type, with a first target in the 7,050-7,030 area and a second target near 6,900 points.
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The following ETFs can be used to invest in the UK stock market:
Vanguard Ftse 100, ISIN IE00B810Q511. This ETF has €4,397m in assets under management, physical replication of the underlying and a distribution policy (with dividends being distributed quarterly to investors). The total expense ratio (TER) is 0.09% per annum.
HSBC Ftse 100, ISIN IE00B42TW061. This ETF has assets under management of EUR 567m, which provides for the physical replication of the underlying (via a swap), which adopts a distribution policy (with dividends being distributed semi-annually to investors). The total expense ratio (TER) is 0.07% per annum.
iShares Core Ftse 100, ISIN IE00B53HP851. This ETF has €2,146m in assets under management, physical replication of the underlying and an accumulation policy (with dividends being reinvested within the fund). The total expense ratio (TER) is 0.07% per annum.
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