Current trend

London's leading FTSE 100 index is trading sideways at 8277.0 amid a fresh correction in the bond market.

This week marks the main phase of the UK corporate earnings season. Unilever Plc., London Stock Exchange Group Plc. and Barclays Plc. will report financial results today.

Fast-moving consumer goods maker Unilever Plc.'s revenue is expected to be 15.26 billion pounds, down from 16.09 billion pounds in the previous quarter but slightly up from 15.24 billion pounds in the same period a year earlier. London Stock Exchange Group Plc.'s revenue is expected to reach 2.13 billion pounds, up from 2.12 billion pounds in the previous quarter and 1.97 billion pounds last year. Meanwhile, Barclays Plc.'s revenue is forecast to rise to 6.38 billion pounds, up from 6.32 billion pounds in the previous quarter and 6.26 billion pounds a year earlier.

The high interest rate of 5.00% has a positive effect on the yields of leading bonds, which in turn is a restraining factor for the stock market: thus, the rate on 10-year debt securities rose to 4.201%, approaching the high of 4.228% from October 11, the yield on 20-year bonds increased to 4.678%, falling short of the high of 4.712%, and 30-year securities rose to 4.730% from 4.623% a week earlier.

The growth leaders in the index are WPP Plc. ( 6.10%), Smurfit WestRock Plc. ( 4.59%), Reckitt Benckiser Group Plc. ( 3.99%), DS Smith Plc. ( 3.11%).

Among the leaders of the decline are 3i Group Plc. (–2.45%), Anglo American Plc. (–2.35%), Smiths Group Plc. (–3.01%).

Support and resistance

On the daily chart, the index quotes continue their local correction, approaching the resistance line of the descending channel with boundaries of 8400.0–8000.0.

Technical indicators are in a state of uncertainty: the fluctuation range of the Alligator EMAs has narrowed almost completely, and the AO histogram is forming new correction bars, being below the transition level.

Support levels: 8195.0, 8027.0.

Resistance levels: 8330.0, 8560.0.

Trading tips

If the index continues growing, and the price consolidates above the resistance at 8330.0, long positions with a target of 8560.0 and stop-loss of 8250.0 will be relevant. Implementation time: 7 days and more.

If the asset reverses and continues declining, and the price consolidates below 8195.0, short positions can be opened with the target at 8027.0. Stop-loss — 8250.0.