FTSE 100 Remains Bullish Above 5869
With commodities rising, the FTSE 100 (FXCM: UK100) is currently outperforming both the DAX and S&P 500. The latest slide in the U.S. Dollar on the FOMC outcome (relief for commodities), and the surprise cut by the BoJ (adding to risk-appetite), should keep the FTSE 100 strong.
From a technical point of view, the trend is bullish above the January 27 low of 5869 and may reach the January 5 high of 6158 over the next few weeks. A short-term resistance level on the path to the January 5 high is the 6081 level.
Traders looking to add to their bullish exposure will probably wait for a pullback to the 5956 to 5910 range. Here the risk/reward ratio favors long positions and an alternative entry is a break to this week’s high of 6029.
Traders not buying into the idea that the Bank of Japan surprise cut will lift the FTSE 100, or for some other reason, are most probably going to be bearish and are probably better off waiting for a break to the January 27 low of 5869. In this scenario, the FTSE 100 may reach the January 26 low of 5769, and on a successful break to this level, the January 20 low of 5600.
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FTSE 100 | FXCM: UK100
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com
Contact and follow Alejandro on Twitter: @AlexFX00
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.