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
  • Believe it or not, some stocks may actually be more attractive in a bear market. Learn more about Defensive stocks here:https://t.co/TMcbMALtbw https://t.co/FQFnd3SIkG
  • Further your forex knowledge and gain insights from our expert analysts @JohnKicklighter and @JStanleyFX on $USD with our free Q4 market analysis guide, available for free today. https://t.co/7G7pWntiyY #DailyFXGuides https://t.co/k803MjNfTC
  • Stocks looked poised to rally with risk sentiment generally strong and technical signposts supportive of higher levels. Get your weekly equities forecast from @PaulRobinsonFX here: https://t.co/j0iidIkrfR https://t.co/Jki7lJcs0B
  • Volatility, volatility, volatility. It's talked about so often but how can a trader really incorporate this into their approach? Find out here: https://t.co/SVmeGHIP2P https://t.co/rRe35rW8Mh
  • Markets move in cycles, and stocks do too, with certain sectors carrying more attraction in various backdrops. Learn more here:https://t.co/HMyeIy09Wm https://t.co/K16BSqaRxw
  • Bitcoin broke above $60k earlier in the session to a fresh multi-month high on the renewed expectation that the SEC will approve a futures-based Bitcoin ETF very soon. Get your weekly #Bitcoin forecast from @nickcawley1 here: https://t.co/cq9KH6fdQB https://t.co/isXVY87GZq
  • Further your stock trading knowledge and gain informed market analyses from our expert analysts @HathornSabin and @JMcQueenFX on Indexes with our free Q4 guide, available today.https://t.co/YQG1aaIT8C #Dailyfxguides https://t.co/aJViAT9lw8
  • Get your basics right. Find out what is stock market volatility and how you can trade It here:https://t.co/pK95WaqA3j https://t.co/sLMza2wKYd
  • The Japanese Yen continues to be pummeled against most major currencies. Get your weekly Japanese Yen forecast from @HathornSabin here: https://t.co/WY5rcoqNP2 https://t.co/JT8yOUgceA
  • The US Dollar paused its advance against ASEAN currencies. USD/SGD eyes a key trendline, USD/THB risks stalling, USD/PHP enters consolidation as USD/IDR continues ranging. Get your market update from @ddubrovskyFX here:https://t.co/Hd4mu0MKkp https://t.co/1kOgueJOXz
FTSE Technical Outlook – The Struggle Continues Near Multi-Month Lows

FTSE Technical Outlook – The Struggle Continues Near Multi-Month Lows

Paul Robinson, Strategist

FTSE Technical Highlights:

  • FTSE generally weak sitting near multi-month lows
  • Solid near-term support just under 7500
  • Long-term chart pattern revisited

To see what fundamental drivers and intermediate-term technical factors are driving the FTSE & British Pound, check out the DailyFX Q3 Trading Forecasts.

FTSE generally weak sitting near multi-month lows

The FTSE continues to demonstrate relative weakness among major global indices, lately performing a bit worse than its Euro-zone counterparts (DAX/CAC) and considerably worse than the U.S., which is running to new heights (S&P 500, Nasdaq 100).

Indeed, there is glaring divergence right now between several major global equity markets and the U.S. Turning to Asia, the Nikkei is sitting a good distance from it’s January highs, too, struggling to get to its best levels since May.

What does this all mean for the FTSE? The relative weakness suggests that if the struggles continue, when (if) risk appetite weakens in the world’s largest stock market, we could see the footsie trade sharply lower. We saw something like this happen from January to March.

Long-term Chart Pattern Revisited

This brings us to the long-term pattern we discussed a couple of weeks back. The Reverse Symmetrical Triangle, or ‘RST’, that has been developing since June of last year is starting to point to a broad reversal. Looking at the weekly, the initial pullback in May/June led to a failed rally into this month, which is now rolling over towards another lower low.

The pullback, failed rally scenario is typically the sign of an ‘RST’ becoming a reversal pattern and not one which leads to a continuation. We have yet to see a close below the June weekly low of 7508, but if we do (and recent 7477 low) it will further along the notion that the FTSE is on the verge of declining much more swiftly soon.

In the immediate future there is the low from the week before last and 200-day MA, if a decline below 7477 develops look for more immediate selling. There is a lower parallel under 7400 which may provide near-term support, though, and with trading conditions generally choppy heading into the end of summer, playing momentum in either direction isn’t a prudent approach. Entries will likely be best kept to counter-trend moves…

Check out this guide for 4 ideas on how to Build Confidence in Trading.

FTSE Weekly Chart (RST Pattern)

FTSE weekly chart, RTS pattern

FTSE Daily Chart (Support at feet)

FTSE daily chart, support at feet

You can join me every Tuesday at 9 GMT for live analysis on equity indices and commodities, and for the remaining roster of live events, check out the webinar calendar.

Tools for Forex & CFD Traders

Whether you are a beginning or experienced trader, DailyFX has several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

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

DISCLOSURES