The UK 100 cracked 10000 for the first time ever on Friday as it participated in a wider surge in global indices on the first full trading day of 2026. The UK’s blue-chip index initially rose over 1% from opening levels at 9938 to register a new record high of 10054 before drifting back to eventually close +0.5% at 10000, right on the psychological break out level.
Looking forward, this potentially awkward close, may leave traders with the initial uncertainty of deciding whether the upside momentum continues to even higher levels in the week ahead, or if events in Venezuela over the weekend, where the US launched an assault that captured the country’s President Maduro and his wife to stand trial for drug charges, may lead to a bout of risk aversion.
Initial moves in early trading on Monday have currently shrugged off concerns regarding events in Venezuela with the UK 100 trading +0.2% higher at 10022 at time of writing (0700 GMT), however things can change quickly.
On a more macro basis, the UK 100, which is packed full of multi-national corporates that generate over 70% of their revenue outside of the UK, may be more impacted across the week by economic data from the US that could directly influence market expectations for when the next Federal Reserve interest rate cut may realistically take place.
The ISM Services PMI survey (Wednesday, 1500 GMT), will provide an important update on the health of the US economy. Service activity is the main driver of growth, so the focus may be on whether it continues to hold above 50, in economic expansion territory, or if consumer concerns regarding job security and higher prices have led to a drop off in activity.
Then on Friday, it’s the release of Non-farm payrolls at 1330 GMT, providing traders with an early update on the strength of the US labour market. The outcome of this release, including the headline and unemployment rate (currently 4.6%) could have volatility implications for the UK 100 into the weekend, depending on how far the readings deviate from market expectations.
Technical Update: Breaking Higher From Triangle Pattern?
Traders often view round numbers as psychological resistance, so last week’s break above 10000 in the UK 100 naturally raises the question of whether the index is attempting to break higher again. This latest move also carries added significance, as it coincided with a new all‑time high at 10054 posted on Friday.
While not a guarantee of upside momentum, traders may be watching to see whether this move above 10000 can generate further strength.
With that in mind, it remains prudent to monitor key support and resistance levels closely in the coming week. This could help determine whether the recent price action reflects a continuation of upside momentum capable of producing new highs, or whether the break above the October/December resistance proves to be a false move, from which a price correction could emerge.
Potential Resistance Levels:
Having established a new all‑time high of 10054 last week from which fresh selling pressure emerged, this level may form the first resistance focus, and it could be useful to observe how price behaves around this level in the week ahead. Closing breaks above 10054 may be required to maintain upside momentum toward higher levels.
If confirmed, closing breaks above 10054 could signal a resumption of price strength, opening the way for a move toward 10128, which is the 38.2% Fibonacci extension. Closing breaks above 10128 could then open the way for further gains toward 10248, which is the 61.8% extension.
Potential Support Levels:
By running Fibonacci retracements on the latest advance from December 9th to the January 2nd all‑time high, the 38.2% retracement level is identified at 9881. This could act as the first support zone should a price correction in the UK 100 develop.
As the chart above highlights, closing breaks below 9881 could expose further downside risks for moves toward 9775, which is the 61.8% retracement. Should that level also give way, weakness may extend toward 9610, the December 9th low.
The material provided here has not been prepared accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research, we will not seek to take any advantage before providing it to our clients.
Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.
Looking forward, this potentially awkward close, may leave traders with the initial uncertainty of deciding whether the upside momentum continues to even higher levels in the week ahead, or if events in Venezuela over the weekend, where the US launched an assault that captured the country’s President Maduro and his wife to stand trial for drug charges, may lead to a bout of risk aversion.
Initial moves in early trading on Monday have currently shrugged off concerns regarding events in Venezuela with the UK 100 trading +0.2% higher at 10022 at time of writing (0700 GMT), however things can change quickly.
On a more macro basis, the UK 100, which is packed full of multi-national corporates that generate over 70% of their revenue outside of the UK, may be more impacted across the week by economic data from the US that could directly influence market expectations for when the next Federal Reserve interest rate cut may realistically take place.
The ISM Services PMI survey (Wednesday, 1500 GMT), will provide an important update on the health of the US economy. Service activity is the main driver of growth, so the focus may be on whether it continues to hold above 50, in economic expansion territory, or if consumer concerns regarding job security and higher prices have led to a drop off in activity.
Then on Friday, it’s the release of Non-farm payrolls at 1330 GMT, providing traders with an early update on the strength of the US labour market. The outcome of this release, including the headline and unemployment rate (currently 4.6%) could have volatility implications for the UK 100 into the weekend, depending on how far the readings deviate from market expectations.
Technical Update: Breaking Higher From Triangle Pattern?
Traders often view round numbers as psychological resistance, so last week’s break above 10000 in the UK 100 naturally raises the question of whether the index is attempting to break higher again. This latest move also carries added significance, as it coincided with a new all‑time high at 10054 posted on Friday.
While not a guarantee of upside momentum, traders may be watching to see whether this move above 10000 can generate further strength.
With that in mind, it remains prudent to monitor key support and resistance levels closely in the coming week. This could help determine whether the recent price action reflects a continuation of upside momentum capable of producing new highs, or whether the break above the October/December resistance proves to be a false move, from which a price correction could emerge.
Potential Resistance Levels:
Having established a new all‑time high of 10054 last week from which fresh selling pressure emerged, this level may form the first resistance focus, and it could be useful to observe how price behaves around this level in the week ahead. Closing breaks above 10054 may be required to maintain upside momentum toward higher levels.
If confirmed, closing breaks above 10054 could signal a resumption of price strength, opening the way for a move toward 10128, which is the 38.2% Fibonacci extension. Closing breaks above 10128 could then open the way for further gains toward 10248, which is the 61.8% extension.
Potential Support Levels:
By running Fibonacci retracements on the latest advance from December 9th to the January 2nd all‑time high, the 38.2% retracement level is identified at 9881. This could act as the first support zone should a price correction in the UK 100 develop.
As the chart above highlights, closing breaks below 9881 could expose further downside risks for moves toward 9775, which is the 61.8% retracement. Should that level also give way, weakness may extend toward 9610, the December 9th low.
The material provided here has not been prepared accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research, we will not seek to take any advantage before providing it to our clients.
Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.
Global risk Warning CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading in CFDs. You should consider whether you understand how CFD
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Global risk Warning CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading in CFDs. You should consider whether you understand how CFD
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.