FTSE 100: New Record High Before the Calendar Flips?
- FTSE 100 drifting higher in absence of a reason for sellers to show up
- Record highs around the corner at 7100+
- Economic calendar light this week
The FTSE 100 finds itself drifting higher in the absence of a reason for market participants to sell. The low volatility holiday trading environment will be with us for a few more trading sessions (today the market is closed in observance of the Christmas Holiday). On Friday, the UK index traded around peaks created on 10/24-25, where the market found sellers to the point at 7067 on both days. Only viewed as minor resistance with record highs not far away at over 7100. There are two levels, one is the closing record high created in April 2015 at 7104, and the other is the intra-day record high notched out in October at 7129.8. It may not happen until the calendar flips to January, but it looks likely that the thin band of record levels will get tested if not broken altogether.
The market continues to move further away from support levels we've had penciled in. The primary line we are focused on is the trend-line rising up from the June lows. This trend-line, while briefly breached earlier this month, is considered a steadfast line of support given the number of touches in November and ability to hold on 12/12-13. The 11/10 spike high right around the 7000 mark is support to a lesser degree, and could possibly align with the June trend-line, creating confluence.
FTSE 100: Daily
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As far as data releases are concerned, nothing significant this week. There is one ‘high’ impact release out of the U.S. during London hours; Thursday at 13:30 Advanced Goods Trade Balance. Full calendar here.
The market is closed today in observance of the Christmas Holiday and early on Friday (12:30 GMT) ahead of the New Year...
---Written by Paul Robinson, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.