News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • The Japanese Yen remains in focus with strength potential on risk aversion themes to go along with weakness on themes around higher rates. Get your weekly $JPY technical forecast from @JStanleyFX here: https://t.co/l4UICqJzJy https://t.co/dQ2pS0E4fp
  • Google finance-related search interest in 'Evergrande' has almost overtaken 'Covid'. 'Taper' doesn't even register on the scale https://t.co/P6H9sHFVIB
  • Gold prices gain as potential systemic risks out of China's Evergrande Group roil broader markets. Meanwhile, iron ore is ticking higher after a big drop on Monday as China steps up steelmaking curbs. Get your market update from @FxWestwater here:https://t.co/l4kAWDJ2wm https://t.co/b9m5ADIqqb
  • Gold remains higher despite positive Evergrande news out of China. Meanwhile, copper bulls are pushing prices upward as the potential for a housing crisis in China ebbs. Get your market update from @FxWestwater here:https://t.co/TK3MNntBdA https://t.co/14UKjR4w6M
  • GBP/USD has flattened overnight after its strongest rally in a month on Thursday. The British currency has been under pressure recently as an energy crisis has caused a number of gas providers to go bankrupt. Get your market update from @HathornSabin here:https://t.co/3D8s2eIVWv https://t.co/JDGNwKYyOn
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sIauS https://t.co/JIT5it2HAt
  • Gold could suffer further near-term losses due to rising U.S. Treasury yields and a weak technical picture for price action. Get your weekly gold forecast from @DColmanFX here: https://t.co/g9QvH3L4It https://t.co/Vz98E0Bl9U
  • Gold has been trending lower after failing to clear resistance in the $1835 area earlier this month. Get your $XAUUSD market update from @DColmanFX here:https://t.co/3hm1g3BHgf https://t.co/MdTQKEBCBx
  • Key break here in the 10-year #Treasury yield as it rises to the highest since late June Took out 1.4230 resistance, and the 100-day SMA Eyes now on the 38.2% Fib extension at 1.4775 Also potential falling resistance from March https://t.co/4cI6l210ui
  • The move in rates after this week’s FOMC has continued and the 10 year yield has pushed up to a fresh two-month-high. Get your market update from @JStanleyFX here:https://t.co/CRWhuZ3sxD https://t.co/svHHqN2Zz8
FTSE 100 Well Supported, Eyes for Record Highs

FTSE 100 Well Supported, Eyes for Record Highs

Paul Robinson, Strategist

What’s inside:

  • Risk events, FOMC and BoE are over, a return to ‘normal’
  • FTSE 100 well supported by confluence of support
  • Global risk trends supportive, looking for a push to and possibly above prior record highs

For educational material, see our Trading Guides.

Two major events on the docket this week – the FOMC and BoE meetings – have come and gone. Markets can return to ‘normal’. The FTSE 100 is hanging tough above the June trend-line, and as of the close yesterday, it sits firmly above the once resistance now turned support zone extending back to August. As we expressed the other day, the confluence of rising slope and horizontal support makes for a sound back-drop to lean on.

A healthy appetite for risk is shaping up to keep stock markets around the globe propped up into year-end. The Nikkei has been ripping with a vengeance, U.S. markets are trading in record territory, and in Europe, major indices in the DAX and CAC 40 recently made strong momentous breakouts. Generally speaking, while markets look quite healthy they are extended a bit here. However, it seems unlikely they will fall from the sky given where we are in proximity to the new year and likely to finish out on a positive note.

The FTSE is within striking distance of reaching record highs at 7104 on a closing basis, 7130 intra-day. As long as previously mentioned support holds, we look for the FTSE to at least test record levels in the not-too-distant future. Whether it has the sauce to breakout, that’s another story. But it seems that could be the case at this time. To turn the picture negative we would need to see a drop back below confluence of support and trade below the 12/12 low at 6875.

FTSE 100: Daily

FTSE 100 Well Supported, Eyes for Record Highs

Created with Tradingview

Taking a short-term view, the 2-hour chart shows us good near-term trend-line support and a series of higher highs and higher lows. There is a little resistance around the 11/10 reversal day high, but shouldn't be a signficant obstacle to overcome in this tape. The first level of support comes in around the 12/12, 12/13 highs at 6977. This roughly coincides with the trend-line off the 12/2 low. Even on a breach of the trend-line as long as yesterday’s low at 6925 isn’t taken out, then the trend structure remains favorable. A decline below 6925 will quickly bring the June trend-line into focus on the daily time-frame. Bottom line, the market is well supported at this time and until these levels are broken with conviction the path of least resistance remains in favor of longs.

2-hour

FTSE 100 Well Supported, Eyes for Record Highs

Created with Tradingview

Check out our webinar calendar for a schedule of upcoming live events.

---Written by Paul Robinson, Market Analyst

You can receive Paul’s analysis directly via email by signing up here.

You can follow Paul on Twitter at @PaulRobinonFX.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES