FTSE 100: Eight Points Away From Reaching March High
- The FTSE 100 saw a boost to its price on Friday as Brent Crude oil gained 5.5% on that day.
- Despite the stronger commodity-related sector, the FTSE 100 remains trapped within the 6006-6237 range. A break to this range would be needed for a trend to potentially start emerging.
- Overnight, China Consumer Price Index rose by 2.3% YoY in March, unchanged from February’s reading. No important data reports are on deck today.
Today, the FTSE 100 (FXCM: UK100) is trading near the upper end of the 6006-6237 range, levels which have kept price in place since late February. The rise in the index on Friday was generated by strong gains in the energy and commodity-related firms. The Energy Sector rose by 3.71%, while the Materials Sector rose by 3.15%. Brent Crude oil prices themselves, gained by 5.5% on the day.
However, despite Friday’s gains, the technical outlook for the FTSE 100 remains the same with price trading sideways. It appears that the even higher crude oil price needs to break the current stalemate in the FTSE 100. Alternatively, another driver would take over.
Currently, the March 18 high of 6237 is capping the FTSE 100, while the price is being supported by the March 10 low of 6006.
Resistance levels beyond the upper end of the range of 6237 are the December 29 high of 6322 and the psychological level of 6400. While support levels beyond the lower limit of 6006 are the February 25 low of 5913, followed by the January 24 low of 5843.
On the data front, things are muted today with no important data on deck. Overnight, China Consumer Price Index rose by 2.3% YoY in March, unchanged from February’s reading. The rise in inflation was driven by food prices which rose 7.6% from 7.3% in February. Inflation excluding food prices remained subdued, gaining only 1% from March of last year.
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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